Recovering SSP through the Percentage Threshold scheme

10 January 2014

Last month we reported on the abolition of the Percentage Threshold scheme from April 2014 and how, given that PTS is often claimed in arrears, it can be claimed back once the SSP field is removed from the EPS.

Currently employers who are claiming under PTS have to advise HMRC of the amount of SSP they have paid to their employees. If SSP is paid but there is no entitlement under PTS then no data is reported to HMRC. As PTS is being abolished there will be no instances when HMRC will require SSP data to be reported. This means the data items that are currently shown on the FPS and EPS for SSP and SSP recovery are being removed from 6th April 2014. However employers will still be able to make late claims under the PTS for periods of sickness up to 5th April 2014 for a period of two years. They will be able to do this via the clerical process for non-RTI years or EYU and EPS for RTI years.

Last month HMRC asked for your views on the suggestion that SSP recovered should be included in the SMP recovered field. As was only to be expected, members were unanimous in their response that this suggestion was not workable and provided several reasons why this was the case.

HMRC have listened to, and acted on, the feedback that you gave and have confirmed that the suggestion of using the SMP recovery field will not be taken forward.

Whilst it is pleasing that HMRC are listening to feedback, this leaves the worrying situation of there being less than three months to go before the SSP field is removed, but no workable solution yet as to how SSP paid in 2013-14 can be recovered from 6 April 2014 onwards.

We are working hard with HMRC to provide a workable solution, however we would welcome suggestions from members who may have had the thought “why don’t they just…?” If you have any suggestions as to how this problem can be overcome please email policy.