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HMRC internal manual

Statutory Payments Manual

Paying and Recovering - SSP: an overview of the Percentage Threshold Scheme (PTS) Historical Information

PTS provided a measure of compensation for employers faced with high levels of sick absence. An employer was entitled to recover some of the SSP actually paid to their employees in respect of periods to 5 April 2014 if the total amount of SSP paid in a tax month was greater than a set percentage of their gross Class 1 NICs (employers’ and employees’) liability for that tax month.

Employers had until 5 April 2016 to recover SSP paid in respect of periods up to 5 April 2014

The amount the employer can recover is the SSP they have paid over and above the set percentage threshold of their NICs liability.

In order to qualify for recovery under PTS the employer must pay the SSP payments:

  • in the tax month in which the employee notified the employer that they were sick
  • in the following tax month, if the employer is unable to pay the SSP in the tax month in which the employee notified the employer that they were sick. For example, the employee is sick in the last week of the month and the employer has already run the computer payroll for that month; or
  • within the time limits laid down in the Statutory Sick Pay Percentage Threshold Order 1995 (SI1995/512) and the Statutory Sick Pay Percentage Threshold Order (Northern Ireland) 1995 (SR1995 No. 69), if the SSP is paid following a decision by one of the adjudicating authorities such as HMRC or the First-tier Tribunal.