The Job Support Scheme
The Job Support Scheme has been postponed as the Coronavirus Job Retention Scheme is being extended until the end of March 2021.
The Job Support Scheme will commence when the CRJS draws to a close, which is currently expected to be December. The latest position from HMRC is as follows:
The scheme is separated into two sub-schemes, “JSS Open” and “JSS Closed”. The former “JSS Open” is for employers who are operating at reduced demand and the later “JSS Closed”, is for employers who are legally required to close their premises as a result of Coronavirus.
How and who can claim (JSS Open and JSS Closed):
Employers will be able to access the Job Support Scheme if:
- they have enrolled for PAYE online
- they have the UK, Channel Island or Isle of Man bank account
Eligible employers will be able to claim the Job Support Scheme grant for employees who were on their PAYE payroll between 6 April 2019 and 11:59 pm on 23 September 2020 with a corresponding RTI Submission made between these dates.
Further details on how to claim under the Job Support Scheme will be published in due course by HMRC given the recent extension of the Coronavirus Job Retention Scheme (CRJS).
Eligible employers will be able to claim the JSS Open grant for employees:
- the employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked.
The employee will receive 66.67% of their normal pay for the hours not worked – the employer will pay 5% (up to a maximum of £125) and the government will pay the remainder of 61.67% (up to a maximum of £1,541.75 per month)
Eligible employers will be able to claim the JSS Closed grant for employees:
- whose primary workplace is at the premises that have been legally required to close as a direct result of coronavirus restrictions set by one or more of the four governments of the UK
- that the employer has instructed to and who cease work for a minimum period of at least 7 consecutive calendar days.
The employer must also reach a written agreement with the employee and the agreement must be available for view by HMRC on request.
Employee A: Reference salary* of £2,000pcm with usual working hours 37.5 hrs per week (150 hrs PCM)
*For employees who are paid a fixed salary, the Reference Salary is the greater of:
- the wages payable to the employee in the last pay period ending on or before 23 September 2020
- the wages payable to the employee in the last pay period ending on or before 19 March 2020, this may be the same salary calculated under the CJRS scheme
*For employees whose pay is variable the Reference Salary is the greater of:
- the wages earned in the same calendar period in the tax year 2019 to 2020
- the average wages payable in the tax year 2019 to 2020
- the average wages payable from 1 February 2020 (or the employee’s start date if later) until 23 September 2020
Disclaimer: The information in the article is correct at the time of publishing. However, please be aware that given the unprecedented and rapidly changing circumstances the information may be subject to further updates and changes.