Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
, see all updates

Trusts for particular purposes: employer sick pay schemes

Employers create sick pay schemes to meet employee sick pay and/or medical expenses. The schemes are funded in one of two ways.

  1. The employer will provide the trustees with sufficient funds to meet sick/ medical expenses already incurred. Or the employer will make such payments as agents for the trustees.
  2. The employer makes sums available to the trustees periodically. These are made before payments of sick pay/ medical expenses are due.

Some schemes/ funds provide for employees to make contributions. Treat these the same as the others.