COVID-19: statutory sick pay rebate returns
With the Omicron variant driving recent increases in COVID-19 case numbers in the UK and more employees taking time off work, the UK government has reintroduced the statutory sick pay rebate scheme.
Small and medium-sized employers (those with fewer than 250 employees) will be eligible for the scheme from 21 December 2021 and retrospective claims could be submitted from mid-January 2022.
Under the scheme, HMRC will reimburse the cost of statutory sick pay for COVID-related absences, for up to two weeks per employee.
However, be aware that as the rebate scheme is technically “State Aid”, businesses who claim (or plan to claim) enhanced Corporation Tax relief for R&D costs should take advice before making any claim to SSP Rebate. Receipt of other State Aids can block access to certain R&D schemes in full, meaning the benefit of the rebate could be lower than the cost from losing this relief.