As of October 31st JOB RETENTION SCHEME (Furloughing) has been extended to December 2nd, 2020 because of the new lockdown.
At this point we do not know if the Job Retention Scheme will be extended further, or if the Job Support Scheme will start. Below you will find the main things you need to know about the JSS currently. However, as you can appreciate, the information changes quickly. If there are changes to the JSS, we will update our information accordingly.
More details can be found at gov.uk
Job Support Scheme and Latest Grants Explained
The Job Support Scheme (JSS) replacee Job Retention Scheme (JRS) when it ends. Subsequently, it has since been augmented with greater detail. These address the various scenarios across the country depending on the Tier System each region is in. Here is a broad overview of the support.
- It will start from November 1st, 2020 and will run for 6 months initially, to April 30th, 2021
- Claims can be made online from 8th December, 2020 and are made monthly. This means that employers must cover the wages upfront and then receive a reimbursement through the scheme.
Who is Eligible
- To be eligible a business must have a UK, Channel Island or Isle of Man bank account and have enrolled online for PAYE.
- Any employee is eligible providing they were on the employer’s payroll between April 6th, 2019 and September 23rd, 2020.
- If employees were no longer employed beyond September 23rd, but have been rehired since then, they can be included under the scheme.
- It is not necessary for an employee to have been furloughed under the JRS to be eligible under the JSS.
In all cases, the support excludes NI and pension contributions. The employer is responsible for these.
The are two variations of the JSS:
- Firstly, those open (for businesses that can operate safely, but experiencing a reduced demand because of coronavirus.
- Secondly, businesses legally required to close because of Coronavirus restrictions.
JSS for Open Businesses
- Your employees must work for at least 20% of their usual hours and employers pay for those hours.
- For the remaining hours that are not worked the employer pays 5%. The government will pay 61.67% , up to a cap of £1,541.75 per month, per employee.
- Bottom line: You pay 24% of normal salary, employee receives 73%
JSS for Closed Businesses
- Under this version of JSS, any business that has been legally required to close under government restrictions (Tier 3/Lockdown) can apply for employees who have not been able to work for a minimum of 7 days.
- In this scenario, the government will pay two-thirds of the employee’s salary each month, up to a cap of £2,083.33 per month
- Bottom line: You pay nothing, employee receives 67%
Grants for Businesses
- £1,300 per month for small businesses with a rateable value of or below £15,000
- £2,000 per month for small to medium businesses with rateable values between £15,000 and £51,000
- The maximum amount of £3,000 per month can be claimed by large businesses
Affected businesses are those which have been required to close (on a national or a local basis), or which have not been legally able to reopen since the first lockdown in March.