On 26 May the government launched its Coronavirus Statutory Sick Pay Rebate Scheme, which allows employers to recover Statutory Sick Pay (SSP) payments they have made to their employees during the COVID-19 pandemic.
The rebate scheme was initially announced at the 2020 Budget as part of a package of support measures designed to help businesses affected by the COVID-19 outbreak. It will allow small and medium-sized employers to apply to HMRC to recover the costs of paying coronavirus-related SSP.
Employers are eligible if they have a Pay as You Earn (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 COVID-19 or if they are self-isolating.
Employers 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. More information on the rebate scheme can be found here.
Meanwhile, the government increased the maximum loan size available through the Coronavirus Large Business Interruption Loan Scheme (CLBILS) from £50 million to £200 million. The loans are available to large businesses affected by COVID-19 from 26 May.
Additionally, on 13 May Chancellor Rishi Sunak extended the Coronavirus Job Retention Scheme (CJRS) until the end of October. Mr Sunak confirmed that employees will continue to receive 80% of their monthly wages up to £2,500. However, the Chancellor said companies will need to start sharing the cost of the scheme from August.
We understand that this is an ever-changing situation, and we will endeavour to keep you up to date on the latest announcements.