MY CIPP
The CIPP's Advisory Service team provides answers to popular questions
Q: A client wishes to pay an employee £10,000 compensation in respect of a payment for hurt feelings along with their termination payment. They have instructed us it should be processed as a tax-free payment on top of their redundancy payment. Is this correct? A: A compensation payment in respect of injury to feelings is subject to both tax and National Insurance contributions (NICs) through the payroll – this is stipulated in section 406 (2) of the Income Tax (Earnings and Pensions Act) 2003 (ITEPA 2003). For reference, see: https://bit.ly/3G1IJiB. The exception to this rule is that, if the injury to feelings payment is wholly concerned with discrimination that occurred before the termination, and is therefore unrelated to the termination process, then it is not subject to tax and NICs as part of the termination package. Q: A client has suggested that the coronavirus statutory sick pay (SSP) rebate scheme, which was recently re-introduced, is aimed solely at the hospitality industry. Can you confirm that it is not just for the hospitality sector, and that any small and medium-sized employers can claim SSP for up to two weeks per employee, regardless of their business sector? A: The coronavirus SSP rebate scheme was re-introduced on 21 December 2021. The scheme is open to all UK-based employers,
employee’s absence for up to 28 days. Can you confirm this is correct please? A: To allow all general practitioners in Great Britain the opportunity to focus on and support the coronavirus vaccine booster programme, an amendment to the SSP regulations was introduced. This allowed employees to self-certify for up to 28 days for absences longer than seven days that commenced on or after 10 December 2021. The extension of the self-certification period was expected to last until 26 January 2022, at the time of writing. For reference, see: https://bit. ly/3t3vWc3. Q: A former employee has contacted my client to advise they have not received their P45. Upon investigation, it was found that a P45 was issued but the individual moved house shortly before leaving the company. The client has since provided the individual with a statement of earnings; however, she is requesting a P45 as she says she never received one. A: If the employee failed to advise the employer of their new address, and that employer has already issued form P45, a second P45 cannot be issued. There is nothing that can be done, but the employer can provide a statement of earnings upon request by the individual concerned. An employer is simply required to comply with section 36 of the
who operate a pay as you earn (PAYE) payroll and had less than 250 employees as of 30 November 2021. The scheme is not just available to the hospitality sector, but open to all sectors. Employers can claim for up to two weeks’ worth of SSP per employee who has been absent for coronavirus-related reasons, regardless of whether they have claimed for them before. For reference, see: https://bit.ly/3q1cb31. Her Majesty's Revenue and Customs (HMRC) is also offering other support to the hospitality and leisure sectors, including £6,000 grants to premises, along with £100 million in discretionary funding given to local authorities.
The coronavirus SSP rebate scheme recently re-opened. Which sectors can use the scheme?
Q: We understand that a self- certification form can now cover an
| Professional in Payroll, Pensions and Reward | February 2022 | Issue 77 6
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