If you are working at a reduced business activity due to coronavirus, then from 1 November 2020 you can agree a Job Support Scheme (JSS) temporary working agreement with any eligible employees.
You must pay your employees on their payment date, you will be able to claim a scheme grant in arrears to cover some of the wage costs. It was announced on 22nd October that the JSS will be revised which will benefit employers in the grand scheme of things. The chancellor confirmed the eligibility conditions and two types of support:
- Open
- Closed
Who can claim?
If you are suffering from reduced business activity due to coronavirus you will be able to check which support you are eligible for. You do not have to have previously claimed the Coronavirus Job Retention Scheme to claim the Job Support Scheme. Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria. You may be able to claim both JSS Open and JSS Closed at the same time for different employees.
What does the Open Scheme entail and are you eligible?
If you are still operating your business but are still suffering by the impact of coronavirus then you will be able to claim through the JSS (Open).
JSS Open is a grant payment employers will use to cover 61.67% of your employee’s wages for hours not worked, up to a total grant cap of £1,541.75 per month. Employers will also have to contribute 5% of the cost of hours not worked up to £125 per month for each employee.
Employers will still be required to pay Income Taxes and National Insurance contributions (NICs).
You must pay employer NICs to HMRC on the full amount paid to the employee, and any grant claimed from the scheme. You must report these via PAYE Real Time Information (RTI) to HMRC on time.
If your employees are working less hours, but they are still working at least 20% of their usual hours you are eligible for the open scheme. Employers will have to communicate with the employee and work out a JSS Open temporary working agreement.
What does the Closed Scheme entail and are you eligible?
If you are operating reduced business activity due to coronavirus (COVID-19) and have closed your business premises put in place by the UK government then you may be able to claim the Job Support Scheme grant for closed businesses (JSS Closed).
You cannot claim if you have voluntarily closed your business premises without being legally required to do so. In order to be eligible, your employee must have been placed on a JSS Closed temporary working agreement which instructs the employee to stop work for a minimum period of 7 consecutive days.
JSS Closed is a grant payment you’ll use to cover 66.67% of your employee’s wages, up to a total grant cap of £2083.44 per month.
You must pay employer NICs to HMRC on the full amount paid to the employee, and any grant claimed from the scheme. You must report these via PAYE Real Time Information (RTI) to HMRC on time.
Check if you can claim because you are closed
Use the postcode checker to check what tier your area is in and whether the UK government has made it a requirement to close.
Click here to find out local restrictions in your area
Guidance on businesses that must remain closed
You cannot claim if:
- You’ve had to close your business premises because of an incident of coronavirus at your business premises.
- You’ve had to close your business premises due to a restriction put in place by an authority other than a UK government.
- You’ve chosen to close your business premises despite not being legally required to do so
- You’ve had to close your business as a result of restricted hours (such as curfews)
- You may be eligible to claim the grant for open businesses.
- You do not need to have claimed a grant under the Coronavirus Job Retention Scheme to be eligible for the Job Support Scheme.
- Employees who stopped working for you before 23 September 2020
- Employees who are serving a notice period after 23 September 2020
How can Asmat & Co help?
There are a number of ways in which we may be able to help. It’s vital to ensure your accountant is helping you in this unprecedented time. If you need help, please call us on 01753 424 968 or use our contact form. We can offer a free consultations, support and advice to avoid contact.
