HMRC has launched a tool to help calculate Statutory Neonatal Care Pay.
The tool asks a series of questions and users are advised to have all this information at hand:
- Is the employee entitled to, or taking, Statutory Neonatal Care Leave?
- Is the employee claiming Statutory Maternity Pay? If no, the tool asks if the employee is claiming Statutory Paternity Pay
- What is the child’s due date of birth (from the MATB1)
- When was the child’s actual date of birth (remembering that the new entitlement only applies for births on and after 06 April 2025)
Once these questions determine one part of eligibility, the tool then goes ask about earnings. If the employee qualifies on these grounds, the tool will ask about the start date of the Statutory Neonatal Care Leave period and the number of weeks the employee is taking.
For Bookkeepers
It is welcome this tool is introduced, however, like the ‘Neonatal care leave and pay: employers' technical guide’, maybe members could have done with this at the time the new Statutory payment came into force.
Note there is the assumption employers realise this Statutory entitlement is only available to employees in Great Britain. Also, as a reminder, ICB consolidates the leave and pay entitlements are follows:
To qualify for leave:
• The baby must enter neonatal care within 28 days after their date of birth; and
• One week’s leave is accrued (to a maximum of 12) for each full 7 continuous days in care
To qualify for pay:
• Eligible employees must have worked for their employer for at least 26 continuous weeks; and
• Have earnings at or above the Lower Earnings Limit for National Insurance Contributions
Other useful guidance exists at the following links:
• Gov.UK;
• HMRC’s Statutory Payments Manual; and
• Acas
