Job Support: how the scheme has evolved
In the fast-moving environment resulting from the spread of Covid-19 and new government control measures, NEIL MOON, Partner at Page Kirk, looks at the expansion of the Job Support Scheme.
The Chancellor recently announced that the Job Support Scheme (JSS) will be expanded to further assist companies that are required to close due to Covid restrictions over the coming months. If any UK business is legally required to close their premises due to coronavirus-related local or national restrictions, then the UK Government will pay two-thirds of the affected employees' salaries for the duration of the closure, up to a maximum of £2,100 per month.
For JSS claims under these circumstances, employers will not be required to contribute towards wages and will only be asked to cover the attached NI and pension contributions. In line with the JSS eligibility criteria, only employees who were on the payroll before 23 September 2020 will be eligible and the affected staff must be off work for a minimum of seven consecutive days.
Let's take a look at the details regarding closed business premises.
Where does the scheme apply?
Anywhere a business has had its premises legally closed as a direct result of coronavirus restrictions set by one or more of the four governments of the UK. The scheme is also available to businesses who have seen their premises restricted to delivery or collection-only. Specific workplace outbreaks identified by local authorities are not covered.
Who can claim?
In line with the broader JSS, it is open to all employers with a UK bank account and UK PAYE scheme registered on or before 23rd September 2020. An RTI submission notifying payment to the employee must have been made to HMRC on or before this date.
How will a business be paid?
The scheme will pay a grant to the employer calculated on the number of eligible
employees who have been instructed to cease work at the relevant premises.
Employers will only be able to use the scheme for employees who cannot work
(paid or unpaid) for that employer.
Is there a minimum length of time associated with closure?
Yes. Employers must have been instructed to cease work for a minimum of seven consecutive (or calendar) days. An employee can return to work at a later date.
Can claims overlap?
No. The scheme does not allow for overlap and claims must be made monthly in arrears.
Are payments taxable?
Yes. What's more, employers will be required to cover employer National Insurance contributions and automatic pension enrolment contributions in full, where applicable.
Do businesses have to make further contributions to wage costs?
No. But they can top up employee pay if they wish.
Is this scheme only available to companies who previously used the Coronavirus Job Retention Scheme?
No. Neither the employer nor employee is required to have taken part in the former furlough scheme.
Remember, the Job Support Scheme as a whole will open on 1st November 2020 and run for six months, ending on 30 April 2021.
If you would like to discuss anything in this blog in more detail, then why not get in touch with Page Kirk? Just call us on 0115 955 5500 or email enquiries@pagekirk.co.uk