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Statutory adoption pay

If a nanny is adopting a child, she has a right to 39 weeks Statutory Adoption Pay (SAP). In order to qualify she must have been in continuous employment (working for the same employer) for at least 26 weeks by the date the adoption is approved. The nanny is either paid at the current rate of SAP, or 90% of her average weekly earnings, whichever is the lowest. For the current rate, please refer to the rates and thresholds page.

The employer (as a small employer) can recover 103% of the cost of SAP from the state - i.e. 100% of nanny's gross wage plus 3% of gross income to cover Employer's NI Contribution. This can be claimed in advance as a lump sum, and Nannytax will claim this on behalf of our clients . The nanny should provide their employer with a matching certificate or letter from the adoption agency, which will need to be forwarded on to Nannytax. On receipt of this we will apply for the SAP rebate on the employer's behalf. We will also issue payslips for nanny throughout the period of her adoption leave, showing SAP paid.

Please note that the lump sum rebate cheque the employer receives from HMRC will include tax and NI (employers and employees) that is yet to be paid. The employer will pay their nanny according to the payslips provided with Tax and NI deducted if applicable.

All nannies have a right to return to work, but only on the same terms as they were previously employed - e.g. not with their own baby if the employer does not wish this. If nanny is not returning to work, then we will send her a P45, on the employer's behalf at the end of her period of SAP. She is technically still in your employment until then. If she wishes to return, she is entitled to an additional 13 weeks unpaid leave before returning to work.

Employment of a temporary nanny (if nanny will resume working following her adoption leave) or a replacement nanny (if she will not be returning to work) will be treated as consecutive employment with regard to a Nannytax subscription. This means that any period of overlapping employment will be deducted from the length of the client's subscription.

Please contact us if you wish to clarify any of the above points.