Coronavirus Statutory Sick Pay Rebate Scheme set to launch

The HMRC has announced a new online service, to 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.

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

"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."

According to 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 the same date.

The repayment will cover up to two 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.