Shared Parental Leave (ShPL) puts a specific administrative burden on employers that is unlike maternity leave: you are processing leave for two parents simultaneously, calculating and reclaiming Shared Parental Pay from HMRC, and managing a flexible leave pattern with multiple start and end dates. Get it wrong and you either overpay, under-reclaim, or leave an employee without the pay they are entitled to.

This guide covers everything an employer needs to administer Shared Parental Leave: the notice process, how to calculate ShPP, HMRC reclaim mechanics, the 8-week confirmation deadline, and the return-to-work steps that close out the process.

Key takeaways

  • Employers have 8 weeks from receiving the notice of entitlement to confirm the validity of a ShPL request.
  • ShPP is the higher of 90% of average weekly earnings or the statutory minimum rate, paid for up to 37 weeks.
  • Employers reclaim ShPP in full from HMRC via the Real Time Information (RTI) system.
  • The parent’s terms and conditions continue during ShPL — pension, holiday accrual, and contractual benefits do not stop.
  • You must keep records of all ShPL notices, calculations, and correspondence for at least 3 years.

The three-stage notice process

Shared Parental Leave requires three formal stages. Each stage triggers a specific employer response window.

Stage 1: Curiosity notice

The parent tells the employer they are considering ShPL. This is advisory only — it has no legal effect and does not trigger any obligations. Many employers use this as a signal to begin preparing the ShPL calculation.

Stage 2: Notice of entitlement and intention

Both parents’ employers must receive this notice. It contains:

  • The birth parent’s maternity leave and pay details
  • A declaration from the birth parent that they intend to cancel part of their maternity leave
  • A declaration from the partner confirming they meet the eligibility criteria
  • The proposed pattern of ShPL (which weeks, which parent)
  • A copy of the birth parent’s statutory maternity pay (SMP) calculation

You have 8 weeks from the date of receipt to confirm whether the notice is valid. The notice date is the date it is received, not the date it was sent.

Stage 3: Notice of period of leave

Each parent gives a separate notice specifying the exact start and end dates of each block of ShPL. This must be given at least 8 weeks before the start of the block. Once the notice period has passed, the dates are fixed — the parent cannot unilaterally change them.

Calculating Shared Parental Pay

ShPP is calculated using the same framework as SMP:

  • 90% of the parent’s average weekly earnings over the 8-week qualifying period (ending 15 weeks before the due date)
  • Subject to a minimum rate set by the Secretary of State each tax year

The higher of the two applies. If 90% of average weekly earnings falls below the statutory minimum, the statutory minimum applies. If it exceeds the statutory minimum, the parent receives 90% — there is no cap on the percentage, only on the minimum.

Worked example

Emma earns £32,000 per year. Her average weekly earnings over the qualifying period are £32,000 ÷ 52 = £615.38. At 90%, she would receive £553.84 per week — well above the 2025–26 statutory minimum of £184.03. Her employer pays £553.84 per week for the 15 weeks of ShPP she uses.

Her partner, David, earns £24,000 per year. Average weekly earnings: £24,000 ÷ 52 = £461.54. At 90%, his ShPP is £415.38 per week — also above the statutory minimum.

If either parent earned below the qualifying threshold, they would not be eligible for ShPP, even though they may still be eligible for ShPL (the employment criteria differ slightly between leave and pay).

Reclaiming from HMRC

ShPP is paid by the employer but fully reimbursed by HMRC. To reclaim:

  1. Process the ShPP payment through payroll as you would SMP.
  2. Report the payment through Real Time Information (RTI) each time it is paid.
  3. HMRC adjusts your PAYE liability automatically, reducing the amount you owe on your monthly or quarterly PAYE submission.

You do not submit a separate reclaim form. The RTI report of the ShPP payment triggers the offset. If you are on a monthly PAYE scheme, the reclaim appears on your next PAYE bill.

Employers sometimes make the mistake of treating ShPP as a cost to the business rather than reclaiming it. This creates an unnecessary expense that compounds with each qualifying employee.

The 8-week confirmation window

When you receive the notice of entitlement, the clock starts. You have exactly 8 weeks from the date of receipt to respond with confirmation. During this time you should:

  1. Verify the birth parent’s SMP entitlement and calculate the remaining leave and pay.
  2. Confirm the partner meets the employment and earnings criteria.
  3. Check the proposed pattern for any inconsistencies with the statutory rules.
  4. Confirm or query the notice — if the notice is incomplete or inaccurate, you can query it, but the 8-week clock does not reset unless the parent provides a new notice.

If you fail to respond within 8 weeks, the parent is entitled to take the ShPL as proposed. Missing the deadline does not prevent the leave from starting.

Maintaining terms and conditions

During ShPL the parent retains their full terms and conditions of employment (except pay), including:

  • Holiday accrual — statutory and contractual holiday continues to accrue.
  • Pension contributions — employer pension contributions continue at the same rate.
  • Contractual benefits — private health insurance, life insurance, and other benefits continue.
  • Length of service — ShPL counts for continuity of employment.

The only term that changes is pay — the parent receives ShPP instead of salary (unless the employer tops up ShPP as a contractual benefit).

Common pitfalls

1. Incorrect qualifying period

The 8-week qualifying period ends 15 weeks before the due date (or the actual date of birth if earlier). Using the wrong end date produces incorrect average weekly earnings and an inaccurate ShPP calculation.

2. Failing to reclaim through RTI

ShPP is fully reimbursable, but only if reported through RTI at the time of payment. Missing the RTI report for a pay period means the reclaim is lost until the next submission, which may create cashflow problems.

3. Not tracking ShPL periods separately

Each block of ShPL starts and ends on a specific date. If you treat ShPL as a single continuous period rather than tracking each block, you will overpay or underpay ShPP when the parent returns to work between blocks.

4. Reducing holiday during ShPL

Some employers incorrectly reduce holiday entitlement during ShPL. Statutory holiday continues to accrue during any form of family leave, and contractual holiday in excess of the statutory minimum is governed by the employment contract.

5. Not recording the notice date

The 8-week confirmation window runs from the date of receipt. Without a clear record of when the notice was received, you cannot prove compliance if challenged.

Putting it into practice

Five steps cover most ShPL administration:

  1. Create a ShPL tracking template that records the date of each notice received, the confirmation deadline, and the proposed start date of each block.
  2. Set up ShPP as a separate payroll line that can be toggled on and off per block, distinct from SMP.
  3. Reclaim ShPP from HMRC through RTI for each pay period in which ShPP is paid — do not batch reclaim at year-end.
  4. Maintain pension, holiday, and contractual benefits throughout every ShPL block, with the parent’s full terms of employment documented.
  5. Log all ShPL correspondence and calculations for at least 3 years after the leave ends.
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A leave management system that tracks ShPL notices, calculates ShPP across multiple parents, and manages the 8-week confirmation deadline keeps your payroll compliant and your employees informed.

Sources

Last updated: 26 July 2026. This article is general information, not legal advice.