The Government has announced a new online service which will be launched for small and medium-sized employers to recover Statutory Sick Pay (SSP) payments which they have made to their employees.
When is the Statutory Sick Pay Rebate Scheme set to launch?
Employers can make their claims through the new online service from 26 May.
This means they will receive repayments at the relevant rate of SSP that they have paid to current or former employees for eligible periods of sickness starting on or after 13 March 2020.
Who qualifies as a Small or Medium Sized Business?
You will need to have fewer than 250 employees to apply to HMRC to recover the costs of paying coronavirus-related SSP.
What is the current rate of SSP
The current rate of SSP is £95.85 per week[1]. Employers can choose to go further and pay more than the statutory minimum (this is known as occupational or contractual sick pay)
Where an employer pays more than the current rate of SSP in sick pay, they will only be able to reclaim the SSP rate.
Which employees are covered in the new Statutory Sick Pay Rebate Scheme
The scheme covers all types of employment contracts, including:
- full-time employees
- part-time employees
- employees on agency contracts
- employees on flexible or zero-hour contracts
Other SSP eligibility criteria apply.
Statutory Sick Pay Rebate Scheme: Are Charities eligible ?
Connected companies and charities can also use the scheme if their total combined number of PAYE employees is fewer than 250 on or before 28 February 2020.
Will a Doctor’s Fit Note be required from my Employees?
Employees do not have to provide a doctor’s fit note for their employer to make a claim under the scheme.
Can I furlough an employee who has been advised to shield?
Employers can furlough their employees who have been advised to shield in line with public health guidance and are unable to work from home, under the Coronavirus Job Retention Scheme. Once furloughed, the employee should no longer receive SSP and would be classified as a furloughed employee. Where an employee has been notified to shield and has not been furloughed, the rebate will compensate up to 2 weeks of SSP from 16 April 2020.
[1] For the period 13 March 2020 to 5 April 2020 the SSP rate was £94.25 per week
*CORONAVIRUS STATUTORY SICK PAY UPDATE: 28 May 2020
*You can find out more and submit a claim here – www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19
Alternatively, speak to your accountant.
HB Accountants can assist our clients and/or make claims on your behalf.
Please do not hesitate to get in touch if we can be of any assistance regarding this or any other matter.
HB Accountants are accountants for business. For financial and accounting guidance and support, please contact Keith or Karen. We’re still working hard to help you make the right decisions.
Visit our COVID19 Business Hub for more information
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
