Coronavirus Statutory Sick Pay Rebate Scheme
This scheme will allow SME 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 claims through the Coronavirus Statutory Sick Pay Rebate Scheme from 26 May.
This new online service is designed for small and medium-sized employers to recover Statutory Sick Pay (SSP) payments they have made to their employees.
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.
Tax agents will also be able to make claims on behalf of employers.
Preparation & Eligibility
To prepare to make their claim, employers should keep records of all the SSP payments that they wish to claim from HMRC.
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 that 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 current rate of SSP is £95.85** per week (see also Note below).
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.
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.
Interconnected companies and charities can also use the scheme if their total combined number of PAYE employees was fewer than 250 on or before 28 February 2020.
Employees do not have to provide a Doctor’s ‘fit note’ for their employer to make a claim under the scheme.
Under the Coronavirus Job Retention Scheme (CJRS), employers can furlough their employees who have been advised to shield in line with public health guidance and who are unable to work from home.
Once furloughed, the employee should no longer receive SSP and would therefore 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.
Note: ** For the period 13 March 2020 to 5 April 2020 the SSP rate was £94.25 per week
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