Job Support Scheme
The Coronavirus Job Retention Scheme is due to end on 31 October 2020, which will be replaced by the Job Support Scheme (JSS) set out to support businesses that had to temporarily close due to coronavirus restrictions. The scheme will open on 1 November 2020 and run for 6 months.
The (JSS) will provide businesses with additional wage support provided that the employer will contribute to ensure employees receive at least 77% of their salary. The employee must be working at least 33% of their usual hours. For the time worked, employees must be paid their normal contracted wage. For time not worked, the employee will be paid up to two-thirds of their usual wage. Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee. The government contribution is capped at a maximum of £697.92 per month. The grant will not cover Class 1 Employer NICS or pension contributions, although these contributions will remain payable by the employer.
Are you eligible for the Job Support Scheme?
The JSS is open to all employers and is not limited by sector. If you have a UK bank account and PAYE scheme you are eligible. There is no need to pass any type of financial impact test for SMEs even if Covid-19 has affected a small part of your business.
Contrasting the furlough scheme, the JSS is open to employees who started work after March 2020 however their salaries must have been on the RTI submission on or before 23 September 2020 to qualify. If you cannot provide work for at least a third of the employee’s hours, they are not eligible.
Can you claim the £1,000 bonus for a furloughed employee?
Yes. If you are claiming additional support under JSS you will be entitled to the bonus.
The employer top-up is a key element of the scheme, so if you will not be able to afford this you will need to look at other options for example, agreeing a reduced working week without the extra financial support, or redundancies.
Employers will be able to make a claim under the JSS online from December 2020. The factsheet says that grant payments will be made monthly in arrears, reimbursing the employer for the government’s contribution. This means that a claim can only be submitted in respect of a given pay period after payment has been made and that payment has been reported to HMRC via an RTI return.
The factsheet states that HMRC will check claims, and payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information. Grants can only be used as reimbursement for wage costs actually incurred so, if you have not paid the government top-up to the employee as wages, you would also be liable to repay it.
Direction published by HMRC on the CJRS verifies that a furloughed employee can get back into work for another job without the original employer’s claim for their wage costs under the scheme being stopped however they will have to work it out with their current employer.
How can we help you?
Asmat & Co can help you with any questions related to the Job Support Scheme. All existing clients with a PAYE scheme in place will have access to this scheme.
Email us at info@asmataccountants.co.uk or call us on 01753 424968 for more information!
