In this week’s update, the date for final claims by employers under the Statutory Sick Pay (“SSP”) rebate scheme is approaching and the easement for taxable earnings affected by travel restrictions as a result of COVID-19 will end next month.
Final claims for the SSP rebate scheme
The SSP rebate scheme will close later this month on 17 March 2022. Employers have until 24 March 2022 to submit any new claims for absence periods up to 17 March 2022, or to amend claims already submitted. Employers will no longer be able to claim back SSP for COVID-19 related absences or self-isolation after 17 March 2022.
This means that employers who pay their staff monthly will miss out on rebates where the pay date for SSP for COVID-19 absences is after 17 March 2022.
From 25 March 2022, the normal SSP rules apply which means employers can revert to paying SSP from the fourth qualifying day their employee is off work regardless of the reason for their sickness absence.
Easement for non-resident employees coming to an end
In 2020, HMRC published guidance in its Employment Manual stating non-UK resident employees stranded in the UK because of COVID-19 travel restrictions would not be taxed on earnings for duties performed in the UK after their planned departure date, provided they are taxed in their home state. This easement will end on 5 April 2022 as travel restrictions have been largely withdrawn meaning it is no longer ‘just and reasonable’ to treat these duties as performed outside the UK.
If a taxpayer is non-UK resident, ordinarily any days they spend working in the UK will be treated as days on which they performed duties in the UK. From 6 April 2022, this will be the case even if they are prevented from leaving the UK as a result of COVID-19 related circumstances.
More information will be published on this in this months’ Agent Update and in next month’s Employer Bulletin.
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