CJRS FURLOUGH SCHEME EXTENDED TO 30 SEPTEMBER
The current version of the furlough scheme that started on 1 November 2020 was scheduled to end on 30 April 2020. In order to avoid a “cliff-edge” with resulting widespread redundancies the chancellor has announced a further extension of the scheme and also a phased reduction in support to employers. The CJRS furlough grant for May and June will remain at 80% of the employees’ usual pay for hours not working but it will then be limited to 70% for July and then 60% for August and September.
This phased reduction will operate in a similar way as in September and October 2020 with the employer being required to contribute the remaining 10% and then 20% of an employee’s regular pay so that they continue to receive 80% pay for furloughed hours.
In addition to the 10% and 20% contributions employers will continue to be responsible for paying employers national insurance and pension contributions on the full amount being paid to employees.
SELF-EMPLOYED INCOME SUPPORT GRANTS ALSO EXTENDED
In line with the further extension of the CJRS furlough scheme for employees the chancellor has also set out further support for the self-employed. We had been waiting for the details of the calculation of the fourth SEISS grant covering the period to 30 April and we now know that the support will continue to be 80% of average profits for the reference period capped at £2,500 a month and can be claimed from late April. There will then be a fifth SEISS grant covering the 5 months to 30 September.
The chancellor has also bowed to pressure to extend the scheme to include certain traders who were previously excluded. Thus, those who commenced self-employment in 2019/20 will now be included provided they had submitted their 2019/20 tax return by 2 March 2021. This is potentially a further 600,000 traders.
Conditions for the fifth grant will be linked to a reduction in business turnover. Self-employed individuals whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £2,500 a month. Those whose turnover has fallen by less than 30% will receive a 30% grant, capped at £950 a month. We are awaiting further details of this fifth grant.
CORPORATION TAX RATES TO INCREASE TO 25% BUT NOT FOR ALL COMPANIES
The UK corporation tax rate is currently one of the lowest rates of the G20 countries and the government states it is committed to keeping the rate competitive.
That should have the effect of encouraging companies to remain in the UK and companies to set up here. With other countries considering raising corporate tax rates the chancellor has announced that the UK will follow suit and consequently the rate will increase to 25% from 1 April 2023 where profits exceed £250,000. However, where a company’s profits do not exceed £50,000 the rate will remain at the current 19% rate and there will be a taper above £50,000. Businesses will however be able to take advantage of new tax breaks to encourage investment in equipment and an enhanced carry back of losses.
SUPER-DEDUCTION FOR INVESTMENT IN NEW EQUIPMENT
In order to encourage companies to invest in new capital equipment the chancellor announced a radical new “super-deduction” of 130% where they invest in new plant. This would mean that when a company buys plant costing £10,000 they would qualify for a £13,000 deduction in arriving at business profits. The new deduction, which will run for two years from 1 April 2021, will not be available for motor cars. Certain assets such as fixtures in buildings will only qualify for 50% relief in the first year instead of the normal 6% writing down allowance.
THREE YEAR CARRY BACK OF TRADING LOSSES
Many businesses will have made a loss in the last year as a result of the Coronavirus pandemic and the difficult trading environment.
Trading losses can normally only be set against profits of the preceding accounting period or previous tax year in the case of unincorporated businesses.
The chancellor has announced that the carry back period will be temporarily increased to three years thereby enabling the business to obtain a tax refund. For companies this will apply to loss making accounting periods ending in the period 1 April 2020 to 31 March 2022. For unincorporated traders, the extended loss relief will apply to losses incurred in 2020/21 and 2021/22.
The amount of trading losses that can be carried back to the preceding year remains unlimited for companies. After carry back to the preceding year, a maximum of £2,000,000 of unused losses will then be available for carry back against profits of the same trade of the previous 2 years. There will be a similar £2,000,000 limit for unincorporated businesses.
NO CHANGES TO INCOME TAX RATES AND PERSONAL ALLOWANCE FROZEN
The basic rate of income tax and higher rate remain at 20% and 40% respectively, and the 45% additional rate continues to apply to income over £150,000
The personal allowance and higher rate threshold have been increased in line with inflation to £12,570 and £50,270 respectively for 2021/22. These thresholds will then be frozen until 2025/26 possibly yielding an extra £19 billion for the government.
There had again been rumours that the dividend rate might be increased, but dividends continue to be taxed at 7.5%, 32.5% and then 38.1%, depending upon whether the dividends fall into the basic rate band, higher rate band or the additional rate band. Note that the first £2,000 of dividend income continues to be tax-free.
NATIONAL INSURANCE RATES
The national insurance contribution (NIC) rates and bandings were announced 16 December 2020 to take effect from 6 April 2021.
Employees and the self-employed will not pay national insurance contributions (NIC) on the first £9,570 of earnings for 2021/22, an increase of £1 a week. The employee contribution rate continues to be 12% up to the Upper Earnings limit £50,270, with the self-employed paying 9% on their profits up to the same level. Note that employer contributions will apply to earnings over £170 per week, £8,840 per annum which is also a £1 a week increase.
5% VAT RATE FOR FOOD, ATTRACTIONS AND ACCOMMODATION EXTENDED
In order to continue to support businesses and jobs in the hospitality sector, the reduced 5% rate of VAT will continue to apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK until 30 September 2021.
The 5% reduced rate of VAT will also continue to apply to supplies of accommodation and admission to attractions across the UK.
From 1 October until 31 March 2022 the rate will be set at 12.5% and will then revert to 20% from 1 April 2022.
VAT REGISTRATION LIMIT FROZEN AT £85,000 UNTIL 1 APRIL 2024
The VAT registration limit normally goes up each year in line with inflation but will remain at £85,000 for a further two years. Arguably this makes it easier for businesses to assess whether or not they are required to register for VAT as it is no longer a moving target.
NEW GRANTS FOR HIGH STREET BUSINESSES AND HOSPITALITY SECTOR
Businesses forced to close due to the Coronavirus lockdown will be eligible to apply for grants of up to £18,000 depending upon the rateable value of their business premises. Pubs, restaurants, hotels, gyms and hairdressers will be eligible for a grant of up to £18,000 per premises whilst non-essential retail businesses will be eligible to apply for a grant up to a maximum of £6,000.
The grants are intended to be a contribution towards the fixed costs of the business during the period that they have been unable to trade normally. Staff costs continue to be covered by the CJRS furlough scheme.
The government will also continue to provide eligible retail, hospitality and leisure properties in England with 100% business rates relief from 1 April 2021 to 30 June 2021. This will be followed by 66% business rates relief for the period from 1 July 2021 to 31 March 2022, capped at £2 million per business for properties that were required to be closed on 5 January 2021.
The “Eat out to Help Out” scheme will not be reintroduced this Summer.
NEW RECOVERY LOAN SCHEME
The government have already announced a longer repayment period for “Bounce-back” and CBIL loans. From 6 April 2021 a new Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million to give them confidence in continuing to provide finance to UK businesses. The scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes.
5% MORTGAGE SCHEMES EXTENDED
Another measure announced to stimulate the housing sector is a new 95% mortgage scheme guaranteed by the government that will mean that people buying a house will only need a 5% deposit where the purchase price is no more than £600,000.
APPRENTICESHIP SCHEMES EXTENDED
The current apprenticeship scheme will be improved with payments of £3,000 to employers in England for each new apprentice they hire aged under 25 and continue to pay the employer £1,500 for each new apprentice they hire aged over 25. The schemes will now run until 30 September 2021.
Starting in January 2022 there will be a new “flexi-job” apprenticeship which will allow individuals to work for more than one company via an agency.
The “Kickstart” Scheme announced in the Summer 2020 Plan for Jobs will continue to be available for the 2021/22 academic year to create 6-month work placements aimed at those aged 16-24 who are on Universal Credit and at risk of long-term unemployment. Employers who provide trainees with work experience will continue to be funded at a rate of £1,000 per trainee.
EIGHT NEW FREEPORTS ANNOUNCED
In eight locations around England there will be generous tax breaks to encourage businesses to locate there. These tax breaks include an exemption from SDLT, 100% first year allowances on plant and a 10% per annum structures and buildings allowance.
As part of its recently announced package of support measures the government is providing grants to those businesses in England which are forced to close as a result of local or national restrictions.
The grants will be administered and issued by local authorities and will be determined as follows:
- for properties with a rateable value of £15K or less the grant will be £1334/mth or £667 per fortnight
- for properties with a rateable value of between £15K-£51K the grant will be £2000/mth or £1000 per fortnight
- for properties with a rateable value of £51K or over the grant will be £3000/mth or £1500 per fortnight
To be eligible a business must:
- occupy property on which it pays rates
- have been required to close because of the lockdown restrictions and have been required to close for at least 3 weeks
- be unable to provide its usual in-person customer service from its premises
Businesses that are required to close but which don't pay business rates may be eligible for funding at the discretion of the local authority as may businesses which aren't required to close but which are severely impacted by the restrictions. These businesses may receive a grant of up to £1500.
As you may have seen over the weekend the Prime Minister has announced a new national lockdown which will take effect from 5th November 2020. Additionally the government has announced that the CJRS ("furlough") scheme, which was scheduled to end on 31st October 2020 to be replaced by the Job Support Scheme from 1st November 2020, has now been extended and will remain in place until December 2020.
Key features of the extended furlough scheme are:
- the government will cover 80% of employees wages (up to a cap of £2500/mth) with employers required to pay only NICs and pension contributions
- employees can be on full or flexible furlough
- employees on any type of contract can be claimed for
- neither the employer nor the employees need to have previously used the CJRS.
- to be eligible to be claimed for an employee must be on the employer's PAYE payroll by 23:59 30th October 2020 which means they must have been on an RTI submission made on or before 30th October 2020
- claims methodology will generally follow the current CJRS rules (so referencing "usual hours worked, etc." although further guidance will be published by HMRC shortly
- claims can be made for a minimum period of 7 consecutive calendar days
- as with the current CJRS employers can top-up employees' wages past 80% if they wish
- claims cannot currently be made as HMRC needs to update its systems but there will be no gap in support between the end of the previous scheme and the start of the extension
- at the moment no set end date has been given. The scheme will run until "December"
For more information, support and advice in relation to the measures available to support businesses contact us on 01942 760500 or e-mail email@example.com
We have advised you in previous updates on the Self-Employment Income Support Scheme (SEISS) designed to provide grants to self-employed workers who are ineligible for other support schemes such as the Job Retention Scheme. The Chancellor has now extended the scheme from 1st November 2020 until April 2021.
To be eligible for the grant extension self-employed individuals must:
- currently be eligible for the SEISS (though they do not need to have claimed the grants)
- confirm that they are currently trading and intend to continue to trade
- confirm that they are impacted by reduced demand as a result of coronavirus in the qualifying period - which is from 1st November to the date of the claim
The extension will provide 2 grants each covering a 3 month period. The first, from 1st November 2020 to 31st January 2021, will provide an amount covering 20% of average monthly trading profits for the 3 months and capped at £1875.
The second grant will cover from 1st February 2021 to 30th April 2021 and the level of this grant will be set by HMRC in due course.
All grants are subject to income tax and National Insurance.
HMRC will provide details on how to claim in due course.
The VAT payments deferral scheme expired on 30th June 2020 however the Chancellor has now announced that businesses who deferred VAT due from 20th March 2020 to 30th June 2020 can now pay in smaller payments up to the end of March 2022 instead of the previous date of March 2021 without paying any interest.
To take advantage of this scheme you will need to opt-in.
More information on the scheme will be made available by HMRC in the coming months.
For more information, support and advice in relation to the measures available to support businesses contact us on 01942 760500 or e-mail firstname.lastname@example.org
In our Business Support Update of 19th June 2020 we advised that HMRC was having legislation put in place to enable it to investigate and take action against incorrect claims made under the Coronavirus Job Retention Scheme (CJRS) and the Self-Employed Income Support Scheme (SEISS).
Details have been announced of how to correct any overclaims made under the CJRS and thereby avoid any potential actions being taken against you by HMRC. There are two options available:
- if you are still making claims under the scheme then simply reduce your next claim by the amount previously overclaimed. The claim process gives the option to do this;
- if you are no longer making claims under the scheme then you will need to make contact with HMRC and ask for a payment reference number. The number will have 14 characters and begins with X. The telephone number to call for HMRC is 0800 024 1222.
If we have handled your claims then let us know and we will be happy to assist you in dealing with the repayment. If you have handled your own claims then once you have the reference number you can pay online using the following details:
Sort Code: 08 32 10
Account No. 12001039
The time limits for notifying HMRC of any overclaimed amounts are the latest of:
- 90 days after the date you received the grant you were not entitled to
- 90 days after the date you received the grant that you were no longer entitled to keep because your circumstances had changed
- 20 October 2020
Failure to pay by the time limits may result in you being penalised and you will also have a tax liability in respect of the overpayment
We would stress that HMRC have said they are not actively looking for innocent errors in the claims process but this does not mean that they will NOT take action in such cases where repayment has not been made.
Again, if you are unsure or concerned about any claims made by you or on your behalf under the scheme then please do get in touch.
For more information, support and advice in relation to the measures available to support businesses contact us on 01942 760500 or e-mail email@example.com
On 20th May 2020 we advised you about the Self-employment Income Support Scheme (SEISS) designed to provide grants to self-employed workers who are ineligible for other support schemes such as the Job Retention Scheme. The original scheme covered a 3 month period which expired on 13th July 2020 and claims for that period can no longer be filed.
However the scheme has now been extended for a further 3 months running from 14th July 2020. Eligibility for the second grant will be determined in the same way as for the first and HMRC will again contact you if you are eligible. To be able to claim the second grant you will need to be able to confirm to HMRC that your business has been adversely affected by Covid-19 on or after 14th July 2020. The grant will be worth 70% of your average monthly trading profits and will be paid out in a single instalment covering 3 months' worth of profits, capped at £6750.
You can make a claim for the second grant whether or not you made a claim for the first grant. If you receive the grant you can still continue to work, start a new trade or begin other employment which includes voluntary work but to claim you must also intend to continue to trade in the 2020-2021 tax year. The grant doesn't have to be repaid but it is subject to Income Tax and to self-employed National Insurance.
Reasons for your business to be adversely affected by Covid-19 could include:
- you or your staff are unable to work because you or they are shielding, self-isolating, have caring responsibilities or are on sick leave because of Covid-19
- your trade has stopped, been reduced or you've incurred additional costs because:you have no/fewer customers or clients
- your staff cannot come into work
- your contracts have been cancelled
- you had to buy protective equipment to enable you to trade following social distancing rules
You must keep evidence to confirm that your business was adversely affected at the time you made your claim.
Claims must be made on or before 19th October 2020 and must be made by the claimant NOT by their agent or tax advisor.
The online claims service is not yet open but if you are eligible you will be able to make a claim from 17th August 2020. If you are not eligible to claim a grant through the SEISS then other help may still be available.
The Coronavirus Job Retention Scheme ("CJRS") is changing from 1st July.
We thought we'd remind and update you on the key points:
- the last day that a furlough claim can be submitted for any period ending on or before 30th June is 31st July
- no claims for periods beginning 1st July onward can be submitted before 1st July
- from 1st July furloughed workers can be brought back on a part-time basis, for any amount of time and any shift pattern and their employer can claim a CJRS grant for the hours not worked
- from 1st August the government will continue to pay 80% of wages up to a maximum of £2500/mth for the hours a worker is on furlough but employers will be required to pay the ER NICs and employers' pension contributions
- from 1st September the government will cover 70% of wages to a monthly cap of £2187.50 for the time the employee is on furlough with employers requried to pay ER NICs, employers' pension contributions and top-up employees' wages to ensure they receive at least 80% of their wages, to a cap of £2500/mth for the time furloughed
- from 1st October the government will cover 60% of wages to a monthly cap of £1875 for the time the employee is on furlough with employers requried to pay ER NICs, employers' pension contributions and top-up employees' wages to ensure they receive at least 80% of their wages, to a cap of £2500/mth for the time furloughed
- for hours worked the employees should be paid at their normal agreed rates
The Coronavirus Job Retention Scheme will close to anyone who hasn't been furloughed for 3 weeks by 30th June 2020.
After that date employers can only claim for employees if they have been furloughed for a full 3 week period at some point before the end of June.
Employers will then have up until 31st July 2020 to make claims for any periods of furlough up to 30th June 2020.
For furlough periods starting on or after 1st July 2020 an employer cannot include more people within a claim than they have previously claimed for. So, for example if the most employees claimed for in any previous period is 5 then no more than 5 employees can be included within any claim made from 1st July 2020.
HMRC have announced that businesses will be able to apply to recover the costs of coronavirus-related SSP paid to current or former employees for eligible periods of sickness starting on or after 13th March 2020 via an online service open from 26th May 2020.
Key points of the scheme include:
- repayment will cover up to 2 weeks starting from the first qualifying day of sickness if an employee cannot work because they either:
- have Covid-19 symptoms
- can't work because they are self-isolating because someone they live with has symptoms
- are shielding and have a letter from their GP or the NHS telling them to stay at home for at least 12 weeks
- claims can be made for periods of sickness starting on or after:
- 13th March 2020 for employees who had the virus or symptoms or who are self-isolating because they live with someone with symptoms
- 16th April 2020 for employees who are shielding
- the scheme is eligible to employers who had a PAYE payroll scheme created and started on or before 28th February 2020 and had fewer than 250 employees on 28th February 2020
- employers can claim under both the Job Retention Scheme and the SSP Rebate Scheme but not for the same employee for the same time period
- the scheme covers all types of employment contracts including part-time, zero hours and agency contracts
- where an employer pays more than the statutory minimum SSP they can only claim back the SSP rate
- employers must keep records of all SSP paid that they want to claim back from HMRC. These must be kept for at least 3 years after a claim is paid and should include:
- dates the employee was off sick
- which of those dates were qualifying days
- reason for absence - if they had symptoms, someone they lived with had symptoms or they were shielding
- the employee's NI number
As and when any more information is provided regarding the claim process we will let you know.
Update 6th April 2020
Further Details of Job Retention Scheme Announced
The government has provided further information in relation to the Coronavirus Job Retention Scheme (CJRS) in response to the most commonly raised queries. The full update can be found here: https://www.gov.uk/guidance/cl...
Some key points are:
- *to make a claim an employer must have enrolled for PAYE online*
- directors are able to be furloughed
- employees must be furloughed for a minimum period of 3 weeks at a time
- employers must confirm in writing to their employees that they have been furloughed and a record of this communication must be kept for 5 years
- some classes of individual who are not employees may be eligible. These include:
- office holders (including company directors)
- salaried members of Limited Liability Partnerships (LLPs)
- agency workers (including those employed by umbrella companies)
- limb (b) workers
- normal rules apply for employees on maternity leave, paternity leave, adoption leave or shared parental leave
- Employees still have the same rights at work, including:
- Statutory Sick Pay
- maternity and other parental rights
- rights against unfair dismissal
- redundancy payments
- Grants cannot be used to substitute redundancy payments. HMRC will continue to monitor businesses after the scheme has closed
- HMRC will check your claim, and if you’re eligible, pay it to you by BACS to a UK bank account
- You must pay the employee all the grant you receive for their gross pay, no fees can be charged from the money that is granted
HMRC will retain the right to retrospectively audit all aspects of your claim.
Tax Treatment of the Coronavirus Job Retention Grant
Payments received by a business under the scheme are made to offset these deductible revenue costs. They must therefore be included as income in the business’s calculation of its taxable profits for Income Tax and Corporation Tax purposes, in accordance with normal principles.
Businesses can deduct employment costs as normal when calculating taxable profits for Income Tax and Corporation Tax purposes.
If you require further advice or assistance in relation to this or any of the other business support schemes set up by the government in response to the coronavirus crisis please contact us on 01942 760500 or firstname.lastname@example.org
Update 3rd April 2020
Coronavirus Statutory Sick Pay Rebate Scheme
HMRC has announced further details and guidance in relation to the SSP rebate scheme. These are as follows:
- The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the current rate of SSP that they pay to current or former employees for periods of sickness starting on or after 13 March 2020.
- Employers who pay more than the current rate of SSP can only claim the current rate amount.
- The repayment will cover up to 2 weeks starting from the first day of sickness, if an employee is unable to work because they either:
- have coronavirus
- cannot work because they are self-isolating at home
- Employees do not have to provide a doctor’s fit note for a claim to be made
Who can use the scheme
The scheme can be used by employers if they:
- are claiming for an employee who’s eligible for sick pay due to coronavirus
- had a PAYE payroll scheme that was created and started on or before 28 February 2020
- had fewer than 250 employees on 28 February 2020
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
HMRC will advise when the scheme will end.
Connected companies and charities
Connected companies and charities can also use the scheme if their total combined number of PAYE employees are fewer than 250 on or before 28 February 2020.
Records employers must keep
Employers must keep records of all the statutory sick payments that they want to claim from HMRC, including:
- the reason why an employee could not work
- details of each period when an employee could not work, including start and end dates
- details of the SSP qualifying days when an employee could not work
- National Insurance numbers of all employees who SSP has been paid to
Employers will have to keep these records for at least 3 years following a claim.
The online service through which the SSP can be reclaimed is not yet available.
Update 27th March 2020
Self-Employment Income Support Scheme
The government has now announced new measures designed to provide support for the self-employed, including members of a partnership, who have been adversely affected by Covid-19.
Full details of the scheme can be found here:
The main points are:
- Applications cannot be made yet. HMRC will contact you if you are eligible for the scheme and invite you to apply online
- Access to the scheme is ONLY through GOV.UK.
- Claims can be for a taxable grant worth 80% of trading profits up to a maximum of £2500 per month for the next 3 months. This term may be extended if necessary
- Applicants will be self-employed individuals or members of a partnership
- Applicants must have submitted their self-assessment tax return for 2018-2019; if not then it must be submitted by 23rd April 2020
- Applicants must be trading when they apply or would be except for Covid-19 and intend to continue trading in tax year 2020-2021
- Applicants must have lost profits due to Covid-19
- Self-employed trading profits must be less than £50000 and more than 50% of income from self-employment
- Grants will be calculated from the average profits for tax years 2016-2017, 2017-2018 and 2018-2019 (where applicable) and will be paid in one instalment directly into the Applicant’s bank account
If anyone contacts you claiming to be from HMRC saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam. HMRC are not expecting to make any payments to the self-employed until June so will not help immediate cash flow difficulties.
Update 19th March 2020
You may have heard the announcements about the government’s proposals to help businesses affected by Covid-19. They include a package of measures to support businesses including:
- a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- small business grant funding of £10,000 for all businesses in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
- the HMRC Time To Pay Scheme, details of which can be found here: - https://www.gov.uk/government/news/tax-helpline-to-support-businesses-affected-by-coronavirus-covid-19
The exact details of how these schemes will work are still being developed but it looks likely that the grant funding and rates holidays will be offered by the local authority and that they will contact those businesses eligible for support directly, once the government has made this funding available to local authorities, expected to be some time in April.
More details of the Business Interruption Loan Scheme are available by following the link at https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/ It is likely that that businesses’ own banks will offer the loans but we have no details of the terms under which they will be offered. We do know that the scheme provides the lender with a government-backed guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’, but the borrower always remains 100% liable for the debt.
Regarding SSP, the government have confirmed that SSP will be payable to employees from Day 1 of their sickness absence due to Covid-19 rather than on the 4th day. Employers who employ fewer than 250 employees will be able to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:
- this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
- employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
- employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note
- the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible.
So although it looks as if businesses will be able to reclaim some SSP, the mechanism by which the claim will be made has not yet been announced.
We’ll keep our clients posted as soon as we learn more details.
If you have any specific or urgent concerns in relation to the impact of Covid-19 on your business and how this may be mitigated then please contact us and we will do all we can to assist you.