Adoption - Statutory Adoption Pay (sap) And Leave
(or 103%) reclaim of Statutory Adoption Pay. If the employee intends to return to work before the end of their adoption leave period, or vary their start date, they must give 56 days (28 prior to April 2007) notice to the employer of their date of return. Notification The employee must notify the employer when they have been approved for adoption and of the indicative placement date they have been given by the adoption agency. The placement date is the best estimate of when the adoption leave might start, and will be notified in writing by the agency for forwarding to the employer within 7 days. This date is the best estimate and is no guarantee that a placement will actually be made on that date. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Exclusions Statutory Adoption Pay is payable for a maximum of 8 weeks after the death of an adoptive child, or the unexpected termination of a placement for other reasons. If the employee falls sick during paternity or adoption leave SAP/SPP/ShPP ceases and SSP becomes payable if the employee qualifies. Entitlement to either SAP or SPP/ShPP ceases if the employee is taken into custody; in such cases HMRC take over responsibility for payment on release. Payment SAP is administered by the employer (in the same manner as SMP and: • is subject to average weekly earnings reaching the Lower Earnings Limit (LEL) for the eight-week period prior to the matching date. It is treated as earnings and is subject to PAYE Income Tax and NICs. Other lawful deductions applicable to pay may be applied, but not court orders of any type • can be paid in a lump sum subject to the agreement of both parties • is not payable for any week in which any work is performed for the employer paying the SAP once the employee has taken their entitlement of ten KIT days • is still made where the employee has qualified but leaves employment after placement as long as they do not take another job with an employer who did not employ them at the matching week. Advanced funding Where employers have insufficient tax, NICs, student loan and Construction Industry Scheme deductions to fund the payment of SAP, they can apply to HMRC for advance funding at https:// www.gov.uk/recover-statutory-payments/if-you-cant-afford-to-make-payments. Rates at the start of a tax year The 2004/5 tax year saw a change to the way new rates ‘kicked in’ as a result of the new statutory payments regime that came into force in April 2003. There are now several scenarios where a statutory payment week can straddle the old and new tax years, this relates to: • a week of Statutory Paternity Pay (for ‘fathers’ or adoptive partners) • a week of Statutory Adoption Pay • a week of SMP as a result of an early birth or pregnancy related illness. No printing, copying or reproduction permitted.
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