When an employee asks for Statutory Paternity Pay and does not qualify, the employer must send form SPP1 within 28 days of the pay request and keep a copy [1]. The pay itself is worth £194.32 a week or 90% of average weekly earnings, whichever is lower, for up to 2 weeks [8].
The form has become more important since 6 April 2026. Paternity leave is now a day-one right, and the government estimates that 32,000 new fathers and partners gained access to it as a result [26]. Statutory Paternity Pay did not follow: it still requires 26 weeks of continuous employment and average earnings of at least £129 a week [5]. More employees can now take the leave while still failing the pay test, and each of them should receive an SPP1.
This guide explains what the SPP1 is, when it must be issued, the qualifying conditions it reports against, how the 28-day and 7-day deadlines fit together, what happens when an employee disputes the decision, and what the employer must keep on file. It is written for SME employers, payroll managers and the accountants who run payroll for them.
Key takeaways
- Form SPP1 tells an employee why Statutory Paternity Pay is not payable, and it replaced form OSPP1 from 5 April 2015.
- GOV.UK's employer guide sets the deadline at 28 days from the pay request, and HMRC's manual expects the form within 7 days of the employer's decision.
- The main grounds for refusal are fewer than 26 weeks of continuous employment, average weekly earnings below £129, and late notice.
- Since 6 April 2026, an employee can be entitled to paternity leave from day one while still not qualifying for the pay.
- An employee who disagrees can ask HMRC for a formal decision, and HMRC collects evidence from both sides before deciding.
- SPP records, including weeks not paid and why, must be kept for 3 years from the end of the tax year they relate to.
What the SPP1 form is
The SPP1 is HMRC's standard non-payment explanation for paternity pay. GOV.UK describes it as the form an employer uses to tell an employee why they are not entitled to receive Statutory Paternity Pay [2]. It is a short, two-page form, and HMRC added a new version of it on 14 March 2024 [2].
From OSPP1 to SPP1
The current name dates from the 2015 reform of paternity pay. The SPP1 publication page states that the form replaces form OSPP1 from 5 April 2015 [2], when "ordinary" paternity pay became simply Statutory Paternity Pay. HMRC's PAYE Manual still uses the older OSPP abbreviation in places when it lists the statutory payments an employer must keep records for [15].
The legacy naming persists in other corners. At the time of writing, the form link on GOV.UK's employer guide still points to an OSPP1 address [1], so payroll teams that search for "OSPP1" will often land on the same document.
The SPP1 among the other non-payment forms
Each family-related statutory payment has its own non-payment form. The SMP1 serves the same purpose for maternity pay, and GOV.UK requires it within 7 days of the employer's decision [16]. The SAP1 is the equivalent form for an employee who does not qualify for Statutory Adoption Pay [19]. The table below compares the three.
| Form | Statutory payment | Deadline stated by GOV.UK or HMRC | Main use for the employee |
|---|---|---|---|
| SPP1 | Statutory Paternity Pay | 28 days from the pay request (employer guide), 7 days from the decision (HMRC manual) | Understand the refusal, ask HMRC for a decision |
| SMP1 | Statutory Maternity Pay | 7 days from the decision, and within 28 days of the request or the birth | Claim Maternity Allowance instead |
| SAP1 | Statutory Adoption Pay | Not stated on the publication page | Understand the refusal |
Sources for the table: GOV.UK and HMRC [1] [3] [16].
When an employer must issue the SPP1
The SPP1 is triggered by a refusal, not by a request alone. An employee who qualifies for paternity pay receives it through payroll, and the SPP1 is only needed where the employer decides that one or more of the conditions is not met.
The grounds for refusing paternity pay
HMRC's Statutory Payments Manual lists the cases in which an employee is not entitled to SPP. They are a failure to meet the qualifying conditions, average weekly earnings below the lower earnings limit in the relevant period, and notice given too late [3]. The same page adds that an employee in legal custody is not entitled [3].
For a birth, the qualifying conditions are continuous employment for at least 26 weeks continuing into the qualifying week, which is the 15th week before the week the baby is due, and average weekly earnings not less than the lower earnings limit at the end of that week [4]. GOV.UK's employer guide expresses the earnings test as at least £129 a week gross in an 8-week relevant period [5]. The table below sets out each ground.
| Ground for refusal | Test applied | Where the rule sits |
|---|---|---|
| Not employed long enough | Fewer than 26 weeks of continuous employment into the qualifying week | SPM140200, SPM250100 |
| Earnings too low | Average weekly earnings below £129 in the 8-week relevant period | SPM171000, employer guide |
| Notice too late | Pay not claimed at least 15 weeks before the expected week of childbirth, and no reasonable excuse | SPM140600 |
| Legal custody | Employee in legal custody during the pay period | SPM140800 |
Sources for the table: HMRC [3] [4] [5].
The 26-week test in law
The service condition comes from primary legislation. Section 171ZA of the Social Security Contributions and Benefits Act 1992 requires employment with the employer for a continuous period of at least 26 weeks ending with the relevant week [25]. HMRC's continuous employment overview restates it for births as 26 weeks by the end of the 15th week before the week the baby is due [31].
For adoption the anchor moves. HMRC's manual requires 26 weeks of continuous employment continuing into the matching week for a UK adoption [28]. For an adoption from abroad, the test runs into the week of official notification or to the date the employee wants SPP to begin, whichever is later [28].
The earnings test in practice
Average weekly earnings are worked out from the pay actually received in the relevant period. HMRC's manual states that the gross average must be at least equivalent to the lower earnings limit at the end of the qualifying week, and that where no pay was due on a pay day, blank weeks are included as zero pay [30]. An employee on irregular hours with a quiet two months can therefore fail the test even when annual earnings look comfortable.
In a worked example, an employee paid an average of £120 a week in the relevant period falls below the £129 threshold and receives an SPP1 [5]. An employee paid an average of £180 a week qualifies, and because 90% of that figure is £162.00, the SPP due is £162.00 a week rather than the £194.32 flat rate [20].
Day-one paternity leave and the gap it created
The reform that came into force on 6 April 2026 separated the leave from the pay. It turned what used to be a single eligibility decision into two, and made the SPP1 a routine document rather than an occasional one.
Leave from day one, pay after 26 weeks
GOV.UK's employer guide now states that employees are eligible for paternity leave from their first day of employment [5]. The employee guide confirms that the pay still requires 26 weeks of continuous employment up to the end of any day in the qualifying week and average earnings of at least £129 a week [11]. GOV.UK's overview warns employees directly that they may not get both leave and pay [20].
The government's announcement of the reform described the change as new rights to paternity leave from the first day in a new job, rather than having to wait six months [26]. The leave itself is up to 2 weeks, which must end within 52 weeks of the birth and cannot start before it [22]. The table below shows how the two entitlements now diverge.
| Entitlement | Service needed | Earnings test | Paperwork when not met |
|---|---|---|---|
| Paternity leave | None, day-one right | None | Employer may delay leave in writing within 28 days if notice is late |
| Statutory Paternity Pay | 26 weeks into the qualifying week | Average of £129 a week or more | Form SPP1 |
Sources for the table: GOV.UK [5] [6].
The Moonworkers guide to statutory paternity leave covers the leave side of the reform in more depth.
The transitional notice rule has expired
A temporary rule covered the first months of the reform. GOV.UK's employer guide records a relaxation of notice for babies due between 5 April and 25 July 2026 where the employee had less than 26 weeks of service, and states that this relaxation has now expired [6]. The employee guide confirms that for babies due on or after 26 July 2026, both of the usual notice periods apply [21].
Any SPP1 issued now should therefore be tested against the standard notice rules, not the transitional ones. A payroll template built in spring 2026 may still carry the temporary logic and needs checking.
The notice rules behind a late-notice refusal
Late notice is the ground for refusal that depends most on judgement. It is also the ground most likely to be disputed, so it deserves care before an SPP1 is issued.
What the employee must give, and when
For a birth, the employee must claim paternity pay at least 15 weeks before the week the baby is expected [6]. The leave dates must be given at least 28 days before the employee wants to take the leave [6], and a change to the start of a block of paid leave also needs 28 days' notice [20].
HMRC's manual expresses the birth deadline as the Saturday of the 15th week before the week the baby is due, and sets 28 days' notice for adoption cases [29]. The manual also allows the employer to require the notice in writing, and accepts post, phone, fax or email as methods [29].
| Case | Notice of entitlement to pay | Notice of leave dates |
|---|---|---|
| Birth | At least 15 weeks before the expected week of childbirth | At least 28 days before the leave |
| UK adoption | Within 7 days of the matching date for leave, 28 days for pay | At least 28 days before the leave |
| Change of start date | 28 days before the block of paid leave | 28 days |
Sources for the table: HMRC and GOV.UK [29] [6].
SC3, SC4 and the online form
The employee's claim used to arrive on a paper form. GOV.UK states that the online claim service replaces form SC3 for a birth parent and form SC4 for surrogacy [6]. The SC3 publication page directs employees to that online service [9], and the SC4 page records that the form was replaced on 19 April 2024 [10].
HMRC's PAYE Manual notes that the evidence of entitlement may, but need not, be on form SC3, SC4 or SC5 [15]. An employer's own form, or a clear email, is equally valid. The Moonworkers guide to the SC3 form sets out what the claim must contain.
Testing reasonable practicability
A late claim does not automatically fail. HMRC's manual states that where notice is late the employer will need to decide whether it was reasonably practicable for the employee to give it on time [29]. For adoptions with a short gap between matching and placement, the manual states that the employer must accept the late notice [29].
A premature birth is the classic example of notice that could not reasonably have been given in time. Section 171ZA treats a child stillborn after 24 weeks of pregnancy as a newborn child for SPP purposes [25]. GOV.UK's employer guide confirms that employees still qualify in that case [8].
Deadlines for issuing the SPP1
Two different deadlines appear in official guidance, and they measure from different starting points.
28 days from the request, 7 days from the decision
GOV.UK's employer guide tells employers to send form SPP1 within 28 days of the pay request and to keep a copy [1]. The employee guide states the same deadline from the employee's side: the employer must say within 28 days, using form SPP1, if the employee does not qualify and why [11].
HMRC's Statutory Payments Manual adds that the employer should give the employee the completed and signed SPP1 within seven days of the decision [3]. The two are compatible: the employer has up to 28 days from the request to reach and communicate a decision, and once the decision is made, the form should follow within 7 days. A safe internal rule is to decide promptly and send the form the same week.
A separate written statement on the leave
The SPP1 covers pay only. GOV.UK's employer guide notes that an employee can ask for a written statement explaining the employer's decision, to be given within a reasonable time, such as 7 working days [1]. Where an employer delays leave because of late notice, it must do so in writing within 28 days of the leave request [6].
What happens when the employee disagrees
An employer's refusal is not the final word on entitlement. HMRC, not the employer, has the last say on statutory pay.
Asking HMRC for a formal decision
HMRC's manual states that operational responsibility for all questions and disputes about statutory payments lies with HMRC [13]. An employee who wants a formal decision is referred to the Statutory Payments Dispute Team at HMRC, BX9 1AN, and HMRC staff are instructed not to tell employers what decision to make [13]. NI Direct gives Northern Ireland employees the same route of contacting HMRC [17].
Before deciding, HMRC collects evidence and representations from both the employee and the employer [12]. The evidence can include the notification of the expected birth, continuous employment records and wage records for average weekly earnings [12]. An SPP1 that states the reason clearly, backed by those records, is the employer's best evidence.
Leave disputes go elsewhere
HMRC deals with pay, not leave. Its manual directs disputes about leave entitlement to Acas, or to the Labour Relations Agency in Northern Ireland [13]. Employers should keep the two strands separate: an SPP1 for the pay decision, and a written statement or letter for any leave decision, such as a delay for late notice confirmed in writing within 28 days of the leave request [6].
Payroll, recovery and record keeping
The SPP1 sits inside a wider payroll record. Employers running payroll on HMRC-recognised payroll software for SMEs need the refusal, the eligibility test and any payments held together.
Paying and recovering SPP when it is due
Where SPP is payable, it is earnings for PAYE. HMRC's manual states that all statutory payments are treated as earnings for income tax and National Insurance purposes [28]. In a worked example, an employee normally paid £650 a week receives £194.32 a week of SPP, because 90% of that pay (£585.00) is higher than the flat rate [20].
For a normal week on £650 under tax code 1257L, the Moonworkers engine gives income tax of £81.60 and employee National Insurance of £32.64. For a week of SPP at £194.32 on the same code, it gives income tax of £0.00 and employee National Insurance of £0.00, while employer National Insurance is £14.75.
Employers can usually reclaim 92% of SPP, or 109% under Small Employers' Relief where Class 1 National Insurance in the last complete tax year was £45,000 or less, through the Employer Payment Summary [18]. GOV.UK adds that SPP must still be paid even if the business stops trading [8], and that an employer who cannot afford a payment can apply for an advance [23]. Accountants handling refusals and recoveries across many clients often work from a payroll bureau platform that keeps each decision with the client's file.
What to keep, and for how long
GOV.UK's employer guide lists the SPP records to keep: the date SPP started, the payments made with dates, the payments reclaimed, and any weeks not paid with the reason [7]. Those records must be kept for 3 years from the end of the tax year they relate to [7].
HMRC's SPP2 record sheet asks the employer directly whether form SPP1 was given to the employee, and notes that a copy is useful if the employee disagrees with the decision [27]. HMRC's manual confirms the SPP2 can be used as the employer's record sheet, alongside wage records kept for three years [14]. The PAYE Manual lists the weeks in which SPP was not paid, with the reasons, as part of the required employer record [15].
Automating the eligibility decision
Every ground for issuing an SPP1 is a data test: dates of service, pay in an 8-week window, and the date notice arrived. The Moonworkers HMRC-recognised payroll API evaluates those tests from payroll data, so an HR or ERP platform embedding it can generate the refusal reason at the moment the claim is entered, rather than weeks later. The legal framework for those tests is the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002, which include specific provisions on notice, evidence and cases where there is no liability to pay [24], with the paternity leave rules aligned to the pay period [33].
A practical checklist before sending an SPP1
A refusal that is wrong costs more to unwind than a payment made correctly. The checks below reduce the risk of an SPP1 being overturned by HMRC.
- Confirm the qualifying week. Count back to the 15th week before the expected week of childbirth, or to the matching week for adoption [4].
- Check continuous employment. Apply HMRC's continuity rules to any break before concluding that the 26 weeks are not met [31].
- Recalculate average weekly earnings. Include blank weeks as zero pay and compare the result with £129 [30].
- Test late notice for reasonable practicability. A premature birth or a short adoption timetable can make late notice acceptable [29].
- Separate leave from pay. Grant the day-one leave where it is due, even when the pay is refused [5].
- Send, copy and log. Issue the SPP1 within the deadline, keep a copy, and record the week as not paid with the reason [7].
Paternity leave and pay can now be taken before or after shared parental leave and pay, so the SPP decision should be checked against any shared parental leave notice already on file [32]. The Moonworkers overview of statutory paternity pay covers the payment itself in detail.
Conclusion
The SPP1 is a two-page form, but it records a legal decision that HMRC can review. Its importance grew on 6 April 2026, when paternity leave became a day-one right while the pay kept its 26-week and £129 tests, so that a growing share of new parents now take protected leave with no statutory pay attached.
Employers that treat the SPP1 as the output of a structured eligibility check, rather than as a letter written after the event, will issue it on time, defend it if challenged and keep the record HMRC expects. As statutory family pay continues to change, the businesses best placed to absorb each new rule will be those whose payroll data already holds the dates, earnings and notices the next rule will test.
Frequently asked questions
How long does an employer have to send an SPP1 form?
GOV.UK's employer guide sets the deadline at 28 days from the employee's request for paternity pay [1]. HMRC's Statutory Payments Manual also expects the completed and signed form within 7 days of the employer's decision [3]. The employer must keep a copy.
Can an employee get paternity leave but no paternity pay?
Yes. Since 6 April 2026, paternity leave is available from the first day of employment, but Statutory Paternity Pay still requires 26 weeks of continuous employment and average earnings of at least £129 a week [5]. An employee who passes the leave test and fails the pay test takes unpaid statutory leave and should receive an SPP1 [11].
What can an employee do if they disagree with an SPP1?
The employee can ask HMRC for a formal decision through the Statutory Payments Dispute Team [13]. HMRC collects evidence and representations from both the employee and the employer before deciding [12].
Is the SPP1 the same as the old OSPP1 form?
The SPP1 replaced form OSPP1 from 5 April 2015, when ordinary paternity pay became Statutory Paternity Pay [2]. Some HMRC pages still use the older OSPP wording, including parts of the PAYE Manual on employer records [15].
