Coronavirus Statutory Sick Pay Rebate and Trade Credit Insurance
The last week has been busy for businesses affected by COVID-19.
The UK Government continues to provide daily updates and publications on their measures to deal with the disruptions caused by COVID-19. A relaxing of the lockdown restrictions has allowed some businesses to open, albeit on a reduced scale for most. Claims for grants under the Coronavirus Job Retention Scheme (furloughing) are being paid and Self Employment Income Support Scheme is now open for claims (if you think you are eligible but have not already claimed please see our blog).
Recent updates include the new Coronavirus Statutory Sick Pay Rebate Scheme and government support for businesses through a Trade Credit Insurance guarantee. Useful links to UK Government guidance and our previous updates can be found at the end of this article.
Coronavirus Statutory Sick Pay Rebate Scheme
The UK Government has announced a Coronavirus Statutory Sick Pay Rebate Scheme will open from 26 May 2020.
The scheme will allow employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying coronavirus related Statutory Sick Pay.
Employers will be able to make their claims through a new online service from 26 May 2020 to recover coronavirus-related Statutory Sick Pay, dating back to 13 March 2020, paid to all current and former employees.
Employers will be able to recover up to 2 weeks of Statutory Sick Pay paid to employees 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
Where an employer chooses to pay more than the statutory minimum, they will only be able to reclaim the Statutory Sick Pay rate.
UK Government guidance on the Coronavirus Statutory Sick Pay Rebate Scheme can be found here.
UK Government guidance on how to check if you make a claim under the Scheme can be found here.
Trade Credit Insurance
The UK Government has advised they will temporarily guarantee business-to-business transactions currently supported by Trade Credit Insurance. This guarantee is to prevent businesses having their credit insurance withdrawn, or premiums increasing to unaffordable levels, due to businesses struggling to pay bills as a result of disruption caused by COVID-19.
The guarantee will be delivered through a temporary reinsurance agreement with insurers currently operating in the market. The government will work with businesses and the industry on the full details of the scheme to ensure firms are supported and risk is appropriately shared between the government and insurers.
UK Government guidance on the Trade Credit Insurance guarantee can be found here.
A UK Government business support website can be found here. It contains guidance on all Coronavirus financial measures and business advice.
A UK Government general COVID-19 support website can be found here. It contains guidance on all matters pertaining to the Coronavirus.