Sunday, May 31, 2020

Coronavirus Statutory Sick Pay Rebate Scheme to launch

A new online service will be launched on 26 May for small and medium-sized employers to recover Statutory Sick Pay (SSP) payments they have made to their employees.

The Coronavirus Statutory Sick Pay Rebate Scheme was announced at Budget as part of a package of support measures for businesses affected by the COVID-19 outbreak.

This scheme will allow small and medium-sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying Coronavirus-related SSP.

Employers will be able to make their claims through a 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.

To prepare to make their claim, employers should keep records of all the SSP payments that they wish to claim from HMRC.

Secretary of State for the Department of Work and Pensions, Therese Coffey, said: “We are committed to supporting Britain’s small and medium businesses through this pandemic with a comprehensive package of support.

“This rebate will put money back in the pockets of millions of employers, ensuring they can hit the ground running as the economy re-opens.”

Angela MacDonald, HMRC’s Director General of Customer Services, said: “Our teams have worked hard to deliver this scheme for employers and their employees to ensure they get the support they need. We want employers to be secure in the knowledge they will receive help as they care for their staff during this difficult period.”

Employers are eligible if they have a PAYE payroll scheme that was created and started before 28 February 2020 and they had fewer than 250 employees before the same date.

The repayment will cover up to 2 weeks of SSP and is payable if an employee is unable to work because they:

  • have Coronavirus; or
  • are self-isolating and unable to work from home; or
  • are shielding because they’ve been advised that they’re at high risk of severe illness from Coronavirus

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.

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