Allowing employers to apply to HMRC for refund of SSP where employee’s incapacity related to coronavirus

New statutory instruments

New legislation has been issued in relation to allowing employers to apply for a refund of statutory sick pay (SSP) where an employee's incapacity related to coronavirus (COVID-19).

In force from 26 May 2020, the Statutory Sick Pay (Coronavirus) (Funding of Employers’ Liabilities) Regulations 2020 (SI.No.512/2020) provide for eligible employers to apply to HMRC for a refund of the cost of paying SSP to their employees where -

• that employee’s period of incapacity for work is related to coronavirus; and
• the first day of incapacity for work in that period falls on or after 13 March 2020.

The regulations define an eligible employer as an employer who -

• on 28 February 2020, had fewer than 250 employees enrolled in all PAYE schemes operated by the employer; and
• on 31 December 2019, was not already in difficulty for State aid purposes.

NB - the Statutory Sick Pay (Coronavirus) (Funding of Employers’ Liabilities) (Northern Ireland) Regulations 2020 (SI.No.513/2020) make corresponding provision for employers in Northern Ireland.

SI.No.512/2020 and SI.No.513/2020 are available from legislation.gov.uk