SPM60315 – Disputes, Decisions, Reviews and Appeals - The formal decision

The legislation under which a decision on a statutory payment is given

A decision under section 8 of SSCTOFA1999/article 7 of SSCTOFO(NI)1999 (amended by paragraph 12 of SI 2820/2002 to include SAP and SPP) is a formal decision with appeal rights to the First-tier Tribunal and ultimately the Upper Tribunal. The authority to give these decisions was transferred to HMRC by the Commissioners for Revenue and Customs Act 2005. Only the employee or DWP/SSA can ask for this type of decision but an ECO may also give a decision following a review of an employer’s pay accounts.

Decisions on entitlement to Statutory Payments are given under sections 8(1)(f) and 8(1)(g) about:

• any issue arising as to, or in connection with, a person’s entitlement to SSP, SMP, SAP or SPP - section 8(1)(f)
• any other issue surrounding SSP, SMP, SAP or SPP - section 8(1)(g)
• status, including consideration of the Categorisation of Earners Regulations – if this is necessary, the case may need to be referred to a Status Inspector for an opinion.

Unlike most other decisions given under section 8/article 7, decisions on liability to pay a Statutory Payment normally involve two interested parties, the:

• employer who may have to pay the Statutory Payment, and
• employee who may be entitled to receive the Statutory Payment.

A formal decision on entitlement to a Statutory Payment may be required:

• when the employee and the employer are unable to resolve a disagreement about entitlement and the employee asks for a decision, normally using form SSP14, SPP14, SAP14 or SMP14 or in writing
• when Jobcentre Plus need a decision on SSP or SMP entitlement before they decide a claim to a state benefit See SPM60320.
• when an officer of the Board decides that there is a question to resolve, for example while visiting employers to check their operation of the SP schemes.

Who can ask for a decision on entitlement to a statutory payment

The Statutory Sick Pay and the Statutory Maternity Pay (Decisions) Regulations 1999 and the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002 provide that a request for a SSP/SMP or a SPP/SAP decision by the employee:

• has to be made on the approved form (SSP14/SPP14/SAP14/SMP14) or in writing giving information that the officer of the Board may accept as sufficient in the circumstances
• must be sent to an HMRC office within 6 months of the earliest day in respect of which liability for SSP, SPP, SAP or SMP is in dispute
• must state the grounds (if any) on which the employer has denied liability for SSP, SPP, SAP or SMP in respect of the period detailed in the application