Can a small employer reclaim statutory maternity pay from HMRC?

Yes — you absolutely can reclaim it, and as a small employer you get the more generous rate. For 2026-27 you reclaim 92% of the SMP you pay, rising to 109% if your total Class 1 National Insurance (employer and employee combined) in the previous tax year was £45,000 or less — so check which band you fall into. The current SMP rate is £194.32 a week or 90% of the employee's average weekly earnings, whichever is lower (the first 6 weeks are paid at 90% of earnings), and that rate applies from 5 April 2026. In practice there's nothing to apply for: you simply pay the SMP through payroll, then reduce your PAYE bill by the recoverable amount and report it on your Employer Payment Summary (EPS) — your payroll software will handle the EPS entry for you. Before she goes, make sure you have her MAT B1 certificate as proof of the due date, and keep your SMP records for at least three years. One point people miss: if the recoverable amount is bigger than your PAYE bill in a month, HMRC will repay the difference — but you still need to file the EPS so the claim is properly registered.