Small Employers’ Relief compensation rate increased from 8.5% to 9%

The small employers rate increased to 9% on 6 April 2026. Your clients who qualify for Small Employers’ Relief — if they have paid £45,000 or less in Class 1 National Insurance contributions — can reclaim 100% of all statutory payments they pay except Statutory Sick Pay which cannot be reclaimed, plus an additional 9% compensation. This means small employers can now reclaim 109% from HMRC.

The compensation rate applies to:

• Statutory Maternity Pay

• Statutory Paternity Pay

• Statutory Adoption Pay

• Statutory Parental Bereavement Pay

• Statutory Neonatal Care Pay

• Shared Parental Pay

All other employers paying Class 1 National Insurance contributions, can claim back 92% of the statutory payments they make.

Further information for your clients is available on:

• PAYE and payroll for employers

• Rates and thresholds for employers 2026 to 2027

• Employment Allowance — what you’ll get and check if you’re eligible

If you would like further personal advice or help, please contact our team:

📞 0161 224 3510📧 info@aminandcoaccountants.co.uk 🌐 www.aminandcoaccountants.co.uk

Expert tax advice you can trust – Amin & Co Accountants, Manchester