What is SMP Advanced Funding?
If you cannot afford to make payments to cover maternity pay/paternity pay etc. you can apply for HMRC to pay you in advance.
The cost of your statutory payments (excluding sick pay, SSP) are offset against your company PAYE liabilities (inc. Tax, Ees & Ers NI, student loans, deductions made from subcontractors (CIS payrolls)).
In situations where your PAYE liabilities do not cover the cost of your statutory payments, you can apply for funding from HMRC.
An application for advance funding should be made no more than four weeks before the first payment of statutory payment is due.
HMRC can impose a penalty of up to £3000 where employers either fraudulently or negligently claim advance funding for each employee concerned.
Statutory payment funding is NOT reported to the HMRC as part of any RTI submissions.
There is nothing you need to report to the HMRC re: statutory payment funding and you would report any recovery / compensation amounts as normal on an EPS submission.
The HMRC will maintain their own record of the funding you have received.