Job Support Scheme expanded to firms required to close due to Covid restrictions
On Friday 9th October 2020 the government announced that the Job Support Scheme (JSS) will be expanded to support businesses required to close their doors as a result of coronavirus restrictions.
The summary below is based on what we know at 09/10/2020.
What is the extension to the Job Support Scheme?
This scheme will cover businesses that, as a result of restrictions set by one or more of the four governments in the UK, are legally required to close their premises.
Businesses required to close as a result of specific workplace outbreaks by local public health authorities are not eligible for this scheme.
Businesses which choose to shut because of the impact of covid-19 restrictions will not be eligible.
My business has to close but I can continue to offer delivery and collection, can I claim?
Yes, businesses restricted to delivery or collection only services from their premises are included in the scheme.
Is my business eligible to claim under the extended Job Support Scheme?
To be eligible employers must have a UK bank account. Employees must be on an employer’s PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020.
Employers will only be able to use the scheme for employees who cannot work (paid or unpaid) for that employer.
How long do my staff have to be off work for?
Employees must be off work for a minimum of seven consecutive days.
What happens when my premises reopen?
Businesses will only be eligible to claim the grant while they are subject to restrictions. When premises re-open, employers can claim under the Job Support Scheme under the criteria set out on 24 September.
How much can I claim?
The government will pay two thirds of employees’ normal pay, up to a maximum of £2,100 per month. We’re waiting for more details on how ‘normal pay’ is defined.
Do I have to contribute to employee wages?
Employers will not be required to contribute towards wages but you can top up wages if you wish.
The employer must use the scheme to cover their employees’ wages and pay relevant payroll taxes. The whole of the grant must be used to meet employee costs.
Do I have to pay NI and Pension?
Employers do need to cover employer National Insurance and pension contributions.
Can I claim if I haven’t claimed under the first furlough scheme?
You can apply for the JSS and the new expansion even if you haven’t previously used the Coronavirus Job Retention Scheme (CJRS), often referred to as the furlough scheme.
How long does the scheme run?
JSS is available for six months, from 1 November. The scheme will be reviewed in January.
When will I receive the extended Job Support Scheme grant?
Claims must not overlap and must be made monthly in arrears. Payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December.
Can staff be made redundant?
Employees cannot be made redundant or put on notice of redundancy during the period that their employer is claiming the grant for that employee.
Do my staff have to agree to this?
Employers must agree the new scheme with the relevant staff, make any changes to the employment contract by agreement, and notify the employee in writing. This agreement must be made available to HMRC on request.
HMRC intend to publish the name of employers who have used the scheme, and employees will be able to find out if their employer has claimed for them under the scheme.