The Percentage Threshold Scheme (PTS) will be abolished from the 6th April 2014.
The government gives Employment Allowance with one hand but takes away The Percentage Threshold Scheme with other.
After the 5th April 2014 employers will no longer be able reclaim any statutory sick pay they pay out to employees who qualified for SSP
A bit of a shock for small businesses!
There is however a small window of opportunity to reclaim any amounts of SSP paid out in previous years up to 5th April 2014 if not already claimed. You can make this recovery up to 5th April 2016. After the 5th April 2016 your business will not be able to recover any outstanding SSP for any tax year. If you want any free advices on how to claim any outstanding SSP please give us a call.
Other statutory payments, Statutory Maternity Pay (SMP), Additional Statutory Parental Pay (ASPP), Ordinary Statutory Parental Pay (OSPP) and Statutory Adoption Pay (SAP) remain unaffected. Amount reclaimable 103% if your total class 1 Nics are £45,000 or lower and 92% if your total class 1 Nics are above £45,000.
Why has The Percentage Threshold Scheme been abolished?
It’s all to do with a new scheme which should help get employees back to work after 4 weeks incapacity. The government has announced that the money it saves from The Percentage Threshold Scheme will be ploughed back into a new scheme “Health Work and Wellbeing Initiative”, its quiet a mouthful, lets hope it works.
The Health Work and Wellbeing scheme will be introduced from 6th April 2016. In the interim abolishing The Percentage Threshold Scheme may leave many small employers out in the cold from 6th April 2014.