Can an employer recover any statutory adoption pay that it pays out?

How much statutory adoption pay an employer can recover depends on its total liability for Class 1 national insurance contributions during the relevant tax year.

Employers with national insurance contributions of more than £45,000 can recover 92% of statutory adoption pay that they pay out. Employers with national insurance contributions of £45,000 or less (ie smaller employers) can recover 103% of statutory adoption pay.

The relevant tax year for these purposes is the tax year immediately before the tax year in which the employee is informed of being matched with the child for adoption.