Statutory Parental Pay (Additional) ASPP
Additional Statutory Parental (ASPP) Pay is your employee entitled to it?
Additional Statutory Parental pay is paid to eligible fathers, civil partners or partners of mothers and adopters (male or female) who are taking time off work to care for their child. There has to have been an entitlement to Statutory Maternity Pay (SMP), Maternity Allowance (MA) or Statutory Adoption Pay (SAP) by the mother or adopter. The statutory payments have to have stopped by the mother or adopter returning to work
The employee must apply for ASPP at least 8 weeks before the start date
The earliest date ASPP can start is 20 weeks after the birth of the baby or adoption of a child. ASPP must end no later than the child’s 1st birthday or 12 months after an adopted child was placed. ASPP cannot exceed 26 weeks except in exceptional circumstances. There must be at least 2 weeks left in the Statutory Maternity, Maternity Allowance or Statutory Adoption period
Qualifying for Additional Statutory Parental Pay
- The employee has to have been employed continuously by the same employer for at least 26 weeks before the qualifying week for a birth or matching week for adoptions and continue working for the same employer until the end of the week before the ASPP period begins
- The employee must have a contract.
- The employee must on average have earnings of at least the Lower Earnings Threshold
- Given the employer 8 weeks notice
- Have proof that the SMP, MA or SAP has stopped
- Supplied the correct information in writing on form SC7 for births and SC8 for adoptions,SC9 for adoptions abroad. The employer may also request a birth certificate or for adoption purposes proof of the date the match was made. The name and address of the mother’s or adopter’s employer
ASPP cannot be paid without the relevant forms
The most likely forms an Employer will have to deal with for ASPP are Declarations of Family Commitment.
- SC7 – Becoming a parent
- SC8 – Becoming an adoptive parent
- SC9 – Additional Statutory Parental Pay and Paternity leave when adopting from abroad.
Rates for Additional Statutory Parental Pay
From the 6th April 2018 Additional Statutory Parental Pay is payable at the weekly rate of £145.18 or 90% of the employee’s average weekly pay, whichever is lower for 2 to 26 weeks
None qualifying Employees
If the employee does not qualify for ASPP they may still take leave. The employer must issue the employee with form ASPP1 along with a copy of the declaration of family commitment. The employee may be able to claim a benefit
Keeping in Touch (KIT)
An employee can do some work under their employment contract for their employer whilst on Additional Paternity Leave. The employee can work up to 10 days without losing or ending their ASPP. KIT days can be used singly or in blocks it is up to the employer and the employee how to make use of KIT days. Any amount of work or training no matter how short (even half an hour) will use up a KIT day
Returning to Work
The employee has the right to return to their original job
The employee has the same rights as the rest of the work force including bonuses, pay increases and other benefits on offer
Advance funding from HMRC is available to small employers who cannot afford statutory payments. When possible statutory payments should be off set against PAYE payments due to HMRC
Employers can recover the ASPP paid to an Employee the reclaim amounts are;
- 103% if the total Class 1 NICs for the previous tax year are £45,000 or lower
- 92% if the total Class 1 NICs for the previous tax year are above £45,000
We calculate and reclaim any statutory payments made Free of Charge
Accurate records must be kept HMRC will want to see the evidence in case of an enquiry