I am sure you will have seen that Mr Sunak announced yesterday some additional support for businesses affected by COVID 19. In this email I will just cover the Job Support Scheme (JSS) changes – others will follow in due course with the other changes he announced.

Full details of the new JSS structure can be found here:
https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme

This is well worth a read in full if you are an employer as it covers calculations, eligibility, reference pay etc.

I summarise the key points below:

  • JSS will still start 01.11.20 for 6 months – with the terms reviewed in January
  • The scheme is now split into 2:
    • JSS Open – for employers facing decreased demand
    • JSS Close – for employers who are legally required to close due to government COVID restrictions
  • JSS Open:
    • Employees will need to work 20% of usual hours to qualify (was 33%)
    • They will also get 66.67% of their normal pay for hours not worked
    • 5% of this will be payable by the employer – up to a cap of £125 per month
    • Employers can pay more if they wish
    • Remaining £61.67% will be paid by the government – up to a cap of £1,541.75
  • JSS Closed:
    • Employees will get 2/3rd of the wages – fully funded by the Government
  • Employers will still fund employers NI and pension contributions on both schemes
  • Employers can claim for JSS Open and Closed at the same time, but an employee cannot be split over the two schemes
  • Employers will still be eligible to claim the Furlough Bonus if conditions under that scheme are met
  • The reference salary for the calculations for fixed pay employees is the greater of:
    • the last pay period ending on or before 23.09.20
    • the last pay period ending on or before 19.03.20
  • The reference salary for the calculations for the variable pay employees is the greater of:
    • wages earned in the same calendar period in the 2019-20 tax year
    • average wages payable in the 2019-20 tax year
    • the average wages payable from 01.02.20 (or employee start date) to 23.09.20
  • The usual hours for the calculations for employees is the greater of:
    • usual hours contracted at the last full pay period ending on or before 23.09.20
    • usual hours contracted at the last full pay period ending on or before 19.03.20
  • Eligibility for both schemes:
    • UK bank account
    • Employees that were on the payroll (so an RTI submission made) in the period 06.04.19 to 11:59pm 23.09.20
    • Employees DO NOT need to have been furloughed previously
    • Reduced (for JSS open) or stopped (for JSS closed) working must cover at least 7 consecutive days
    • Employers must have reached written agreement with their employee that they have been offered a temporary working agreement – this must be available to HMRC if requested and kept for 5 years
    • We would suggest taking employment law advice for this agreement/changes in contract
      • Specifically for JSS Closed:
        • Employers are eligible where their operations have been restricted to delivery only and/or provision of food outdoors only
        • Local public health authority restrictions are not qualifying
  • Claims can be made from 08.12.20
  • Claims will only be able to be made in arrears
  • Further guidance is being released at the end of October
  • Where we prepare the payroll for our clients we will again by helping with all the calculations and claims free of charge

As always if you have any queries in regards to the above please do not hesitate to get in touch.

Telephone Number: 01392 360008