If your organisation receives advance funding from HMRC to help cover statutory payments (such as maternity, paternity, adoption, neonatal care, parental bereavement, or shared parental pay), you can record the amount when you add a statutory pay for the employee. Once the statutory pay is included in a finalised pay run, the amount is shown on your P32 report, helping you keep track of repayments.

This article explains how to:

Record HMRC advance funding on statutory pay

This section shows how to add HMRC advance funding when you set up statutory pay for an employee, and how the amount appears on your P32 report.

Steps to add HMRC advance funding to statutory pay

Go to the People menu.
Select People List.
Select the relevant employee.
Select Pay details, then select Statutory pay.
Add a new statutory pay record for the employee, such as Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Neonatal Care Pay, Statutory Parental Bereavement Pay, or Shared Parental Pay.
Go to the Advanced Settings section.
Tick the HMRC advance funding checkbox.
Enter the advance funding amount you have received from HMRC for this statutory pay. You can enter £0.00, a positive value, or a negative value (if correcting a previous entry that has not yet been used in a pay run).
Hover over the information icon next to "HMRC advance funding" to see guidance on how this setting works.
Select Save. You will see a confirmation message if the changes are saved successfully.

Important

Once the advance funding amount has been included in a pay run, the field is locked and cannot be edited or removed. If a pay run that included the advance funding is reversed and no other pay run includes this record, the field becomes editable again.

Steps to view advance funding on the P32 report

Each time a pay run that includes this statutory pay is finalised, the relevant portion of the advance funding is applied to the P32 report for the matching tax month. This continues until the full amount is repaid. If the advance funding is fully repaid, no further amounts will be added to the P32 report for that statutory pay record.

Once the statutory pay is included in a finalised pay run, go to Pay > Reports.
Open the P32 report to view the advance funding for the relevant tax month.

Further information

Get help from the Employment Hero Community

If you are looking for further ideas, try our community.

How does the P32 report handle advance funding when pay runs are unlocked or re-finalised?

If you unlock a pay run that included HMRC advance funding, the amount is removed from the "Advance funding" column of the P32 report for that tax month. If you finalise the pay run again, the P32 report recalculates the advance funding for that month.