New 9% rate for Small Employers’ Relief
HMRC has confirmed an increase to the Small Employers’ Relief (SER) compensation rate, providing a timely financial boost for eligible businesses. Starting from 6 April 2026, the uplift will rise to 9%, up from the previous 8.5% rate.
This change allows qualifying employers to reclaim 109% of statutory family-related payments.
This includes 100% of the statutory pay plus an additional 9% to help cover the administrative burden and the cost of employer National Insurance contributions.
Does your business qualify?
Eligibility for SER is determined by your National Insurance liability. Your business qualifies if your total Class 1 National Insurance contributions were £45,000 or less in the previous tax year.
For the 2026/27 tax year, HMRC will look at your contributions from 2025/26 to determine if you are eligible. It is important to note that qualification is based on your total NIC liability, not your headcount.
What payments can you reclaim?
If you meet the criteria, you can reclaim 109% of the following statutory payments:
Statutory Maternity Pay (SMP)
Statutory Paternity Pay (SPP)
Statutory Adoption Pay (SAP)
Statutory Shared Parental Pay (ShPP)
Statutory Parental Bereavement Pay (SPBP)*
Statutory Neonatal Care Pay (SNCP)
Please note that Statutory Sick Pay (SSP) and any enhanced or contractual pay above the statutory minimum are not covered by this relief.
The 9% increase in practice
To illustrate how this change impacts your figures, consider an employee receiving £3,400 in Statutory Maternity Pay.
Under the new rules from April 2026, you would reclaim:
£3,400.00 (100% of the statutory pay)
£306.00 (9% compensation uplift)
£3,706.00 (Total reclaim amount)
This results in your business receiving £306.00 more than the amount paid out to the employee, assisting with cash flow during their absence.
Navigating a changing landscape
This adjustment arrives alongside broader shifts in the UK employment landscape. National minimum wage rates are increasing, and the Employment Rights Act 2025 is introducing new "day one" rights for staff regarding parental leave and sick pay.
While these reforms aim to support workers, they inevitably increase the overhead for small businesses. The rise in SER to 9% is a welcome measure to mitigate some of these rising employment costs.
Small Employers’ Relief (SER) Fact Sheet: 2026/27
| Feature | Current (2025/26) | New (From 6 April 2026) |
|---|---|---|
| Total Reclaim Rate | 108.5% | 109% |
| Compensation Uplift | 8.5% | 9% |
| Eligibility Threshold | £45k NICs or less | £45k NICs or less |
| Standard Reclaim Rate (Non-SER Businesses) |
92% | 92% |
Qualifying Statutory Payments: SMP, SPP, SAP, ShPP, SPBP, SNCP.
Not Covered: Statutory Sick Pay (SSP) and contractual/enhanced pay.
How Zyla Accountants can help
Managing payroll and staying compliant with evolving HMRC rates can be a complex task for busy business owners. At Zyla Accountants, we ensure your payroll systems are fully updated to apply the correct 109% reclaim rate automatically.
We can review your previous year’s National Insurance contributions to confirm your eligibility and handle the reporting process via your payroll submissions. This ensures you never miss out on the relief you are entitled to while maintaining the rigorous records required for HMRC compliance.