Sick pay ― legal points

Produced by Tolley in association with

Employment Tax

Guidance

An employee who is unable to work because of sickness may still be entitled to pay during any period of sick absence. Such entitlement may be due to:

•
contractual sick pay
•
statutory sick pay (SSP)

This guidance note covers both types of sick pay.

See also the Statutory sick pay (SSP) guidance note in the ‘Mechanics of payroll’ sub-topic for more on the administration of SSP as part of payroll operation.

Temporary amendments were also made to the treatment of SSP and SSP recovery, during the coronavirus (COVID-19) outbreak. For details on this see Simon’s Taxes A8.213, and the GOV.UK guidance, including Sick pay from day one for those affected by coronavirus, and Coronavirus sick pay scheme opens for applications.

ACAS provides guidance on all elements of holiday, sickness and leave.

Contractual sick pay

An employee’s contract of employment may contain provisions entitling them to be paid during any periods of sick absence. An employer does not have to agree to any contractual terms entitling their employees to sick pay. However,

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Sarah Bradford

Director at Writetax Ltd

Sarah Bradford BA(Hons), ACA, CTA (Fellow) is the director of Writetax Ltd, a company providing tax technical writing services on tax and National Insurance, and also of its sister company, Writetax Consultancy Services Ltd. Sarah writes widely on tax and National Insurance and is the author of several books.

Popular Articles

Corporation Tax

Group relief for carried-forward losses

Group relief for carried-forward lossesThis guidance note examines in detail the relief available to groups for carried-forward losses. The scope excludes the treatment of specialist businesses such as banks, insurance companies and oil and gas companies.From 1 April 2017, companies can surrender

14 Jul 2020 11:50 | Produced by Tolley Read more

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more

Trusts and Inheritance Tax

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more

��Ƶ