Who Pays Maternity Pay in the UK?

Jerelyn Aglibao
Aug 1
3 min read

Understanding who pays maternity pay in the UK can be confusing—especially for small business owners juggling payroll responsibilities or employees navigating maternity rights. Whether you're an employer trying to stay compliant or an expecting mother wondering what you’re entitled to, this guide breaks it down in simple terms.

What Is Statutory Maternity Pay (SMP)?

Statutory Maternity Pay (SMP) is a legal requirement in the UK, paid to eligible employees who take time off to have a baby. It allows expecting mothers to take up to 39 weeks of paid maternity leave.

First 6 weeks: 90% of their average weekly earnings (before tax)
Next 33 weeks: £187.18 per week (2025/26 rate) or 90% of their average weekly earnings—whichever is lower

So, Who Actually Pays Maternity Pay?

Employers Are Responsible for Paying SMP

The employer initially pays maternity pay, but here’s the part many small business owners overlook:

You can reclaim up to 108.5% of SMP from HMRC if you qualify for Small Employers’ Relief (SER).

Most UK businesses—especially small ones—don’t need to carry the financial burden in the long term.

What Is Small Employers’ Relief (SER)?

If your business pays less than £45,000 in Class 1 National Insurance contributions in the previous tax year, you qualify for Small Employers’ Relief.

This means:

You can reclaim 108.5% of maternity pay
Reimbursement is typically made via your HMRC PAYE account
You can apply for an advance if you can’t afford to make the payments upfront

The Real-World Struggles Behind Maternity Pay — and How We Help Fix Them

Maternity pay isn’t just a payroll item — it’s something that can affect your team’s wellbeing, your cash flow, and your business peace of mind. Here’s what it actually feels like when you're in the middle of it — and how we help clients like you get through it without the panic.

Scenario 1: “My employee just told me she’s pregnant — and I have no idea what to do next.”

You didn’t see this coming. She’s a key member of the team, and you want to do right by her — but your first thought is, “How do I afford this?” Your second thought? “Where do I even start?”

What you need to know:

You are legally required to pay Statutory Maternity Pay (SMP), but you can reclaim it — and more — from HMRC. If you're a small employer (most of our clients are), you may be able to reclaim 108.5% of what you pay out.

What we’ll help you do:

Check if you qualify for Small Employers’ Relief
Make sure your payroll is set up to report SMP correctly

Scenario 2: “I want to support my team, but I’m genuinely worried about cash flow.”

You’re not trying to cut corners. But let’s be honest — if one team member is away for months and you’re paying out hundreds weekly, it could tip your cash flow over the edge.

What you need to know:

You don’t have to wait until your next HMRC rebate. You can apply for advance funding, so you’re not paying out of pocket.

What we’ll help you do:

File your advance reclaim request with HMRC
Track SMP payments in real-time
Keep your cash flow steady with our smart forecasting tools

Scenario 3: “I’m terrified of getting it wrong in payroll and getting fined.”

Maternity pay comes with rules — lots of them. And if your payroll system isn’t set up properly, HMRC won’t be forgiving.

What you need to know:

Even the best software can’t stop human error. Incorrect reporting or late submissions can lead to penalties or employee complaints.

What we’ll help you do:

Automate the correct SMP setup
Monitor deadlines for leave dates and payments

The Result?

You stay compliant. Your employee feels supported. You don’t lose sleep over funding it. This isn’t just about ticking boxes — it’s about protecting your business and doing right by your team, without the guesswork.

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What If You're Self-Employed or a Freelancer?

If you're self-employed, you won’t get SMP from an employer—but you may be eligible for Maternity Allowance instead, paid directly by the government.

Final Thoughts: You’re Not Alone

Whether you're:

An employer worried about finances and legal compliance
An expecting employee unsure what you’re entitled to
Or a freelancer wondering what support you can claim

We’re here to help.

At Duo Accountants, we support small businesses and individuals in navigating UK maternity pay with ease—from payroll support to reclaim guidance and eligibility checks.