[SCRAPPED 05-Nov-2020] - JOB SUPPORT SCHEME (JSS) - CURRENTLY SCRAPPED DUE TO THE FURLOUGH EXTENSION - [Published 5-Nov-2020]

[SUSPENDED 01-Nov-20]

JOB SUPPORT SCHEME (JSS) opens 1st November 2020 to the end of April 2021. 

CORONAVIRUS JOB RETENTION SCHEME(CJRS) ends 31st October 2020; please see my other furlough page.

• Employees do not have to previously been furloughed claiming on the CJRS prior to 31st October 2020.
• Employees must be on the PAYE payroll before 23rd September (when the scheme was announced).
• A RTI payroll submission to Hmrc must have been made before 23rd September.
• Employees who started during September with their first payroll run after the 23rd, e.g. 30th Sept. do not qualify.
• similar to the original scheme in March 2020.
• You can cycle on and off the scheme.
• Must work a minimum 1/3rd (33%) of the normal hours.
• They will be paid 2/3rds (67%) of their non-worked hours.
• Example - Beth who normally earns £350 pw working 40hrs (i.e. £70 per day ≡ £8.75 per hour).
• ≡ means 'equivalent to', quite different from '=equals to' which follows a calculation.
• Beth is put on the JSS working 2days pw (≡ 40% so it is >33% minimum).
• Her employer pays her £140 for the days worked.
• For the time not worked £210 (350-140), Hmrc will pay 1/3rd = £70 and the employer will pay 1/3rd = £70.
• The government grant the employer can claim is £70.
• Beth will receive £280 pw (worked £140, government £70, employer £70) ≡ 80% of her normal pay.
• In essence beth has only lost 1-days wages £70 ≡ 20% of Beth's normal pay.
• Employee's who only work 33% of their usual hours, will receive 78% of their normal pay.
• Claims can only be made after the RTI submission to Hmrc for the month; claims will open December 2020.
• The employer remains responsible for the employer NI and employer pension contributions.
• Employees cannot be made redundant or put on notice whilst using this scheme.

FACTSHEET AVAILABLE FROM .GOV CLICK HERE

CLOSED VOLUNTARILY or STAFF NOT WORKING THE MIMIMUM 33% OF THEIR NORMAL HOURS.

E.g. A takeaway has to close at 10pm inline with pubs; but a city center takeaway will often do most of their business after the pubs close, thus pre-10pm you might be running at a loss, therefore take the decision to close voluntarily.

• There is no mention of employee's who do not meet the minimum of 33% or have to close voluntarily.
• Therefore, I can only assume that you need to defer to your employment contracts with your staff.
• Unfortunately, Redundancy might be the only option.

Good employment contract are very useful in this situation. One of my clients who has been trading for many years, has a very good staff contracts so that in the event of hard times, they have the power to place all employees on 50% pay, assuming they were not working. This was a life saver early March 2020; they invoked this clause of the contract when all their work was drying up. Fortunately, they Job Retention schemem was announced which was better but they had a back up plan.

Remember employee contracts are a legal requirement within 2-months of the employee's start date; skimping on this (or not doing at all) will almost always hurt you later on. A little money spent now will save you thousands later especially if the working relationship breaks down and become untenable.

SCHEME FOR CLOSED BUSINESSES 12th Oct 2020 - details TBC. 

• Job Support Scheme will be expanded to support businesses legally required to close their premises due to coronavirus restrictions.
• This includes premises restricted to delivery or collection services only from their premises.
• Employees must be on the PAYE payroll before 23rd September (when the scheme was announced).
• Government will pay two thirds of employee's salary (or 67%), up to a maximum of £2,100 a month.
• Cash grants for businesses required to close in local lockdowns also increased to up to £3,000 per month.
• Business required to close as a result of specific workplace outbreaks by local public health authorities are not eligible to claim; (don't get sick).
• Claims can only be made after the RTI submission to Hmrc for the month; claims will open December 2020 and will be reviewed in January 2021.
  
• The employer remains responsible for the employer NI and employer pension contributions.
• Employees cannot be made redundant or put on notice whilst using this scheme.
  

.GOV page click here scroll down half way until you see Further Information, A FACTSHEET is available.