Compliance
Employer Reimbursements, SSP & CIS: Navigating Compliance After April 2026
From reimbursement rules to sick pay changes and industry-wide reporting shifts, employers face a spectrum of compliance updates from 6 April 2026 that transform payroll & contractor reporting.
By NomadicTax Research Team • 5-8 min read • May 13, 2026
## Key Compliance Changes Introduced 6 April 2026
- **Expanded exemptions for employer reimbursements**. Costs of eye tests (for Display Screen Equipment users), certain homeworking equipment, and seasonal flu vaccinations become exempt from Income Tax and National Insurance when reimbursed — aligning reimbursements with direct provision. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
- **Statutory Sick Pay (SSP) overhaul**. The lower earnings limit has been removed: employees are now eligible regardless of income. The waiting period has been eliminated: SSP is owed from the first full day of absence. These apply across the UK. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
- **Construction Industry Scheme (CIS) returns**. Contractors are legally obliged to file CIS returns every month, including nil returns when no subcontractors are used. Late-filing penalties reinstated except for first fixed penalty; further penalties escalate if delays continue. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
- **Small Employers’ Relief (SER) compensation rate** rises to **9%** for employers paying ≤ £45,000 in Class 1 NICs, starting 6 April 2026. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
## Practical Compliance Tips
- Ensure payroll software is updated to apply the correct exemptions and adjustments. Document all reimbursements and ensure policy covers eligibility requirements. |
- Train HR/payroll teams so SSP changes are understood, so that leave records and payroll calculations are accurate from day one. |
- Contractors should review month-by-month CIS return obligations; employers working with contractors must ensure their partners comply. |
- Small employers must check eligibility for SER and factor 109% reclaim into budgeting. |
## Compliance Example
A tech company reimburses an employee £80 for a home-working monitor stand. After 6 April 2026, so long as the item meets qualifying criteria, that reimbursement is exempt from tax and NIC. But reimbursements before that date or for non-qualifying equipment may still be taxable. |
## Common Compliance Misunderstandings
- Thinking all homeworking or health-related reimbursements are exempt regardless of timing or type. |
- Assuming SSP applies from day four as before: for absences starting 6 April 2026 or later, the first day counts. |
- Not submitting nil CIS returns thinking ‘nothing to report’ means ‘no report required’ — but nil returns are mandatory. |
## Bottom Line
Employers must act now: ensure policies, systems, and staff are up to date to apply new regimes correctly. Missteps can lead to payroll errors, penalties, or unnecessary tax exposure.