Job Support Scheme

Date: 28/10/20  |  Author: Sean Toomer
COVID 19 0 Comments

The rules for the Job Support Scheme, which replaces the Job Retention Scheme, have now been released. Read on for the main points.

Note: This blog has now been superseded since the announcement of the 2nd National Lockdown starting 5 November 2020. Click here to see our updated blog on the extended furlough scheme.

JSS Open and JSS Closed

There are two types of support available under the Job Support Scheme (JSS). JSS Open, which is for those businesses who face decreased demand, but are not forced to close due to local COVID-19 restrictions. JSS Closed is for those businesses that are legally required to close based on local restrictions (broadly,'Tier 3' areas).

JSS Open - How much can I claim?

  • Employees must work a minium of 20% of their normal hours and this will be paid by the employer
  • Of the remaining 80% pay, an additional 5% of normal hours will be paid by the employer (up to a maximum of £125 per month)
  • Of the remaining 80% pay, 61.67% will also be able to be claimed by the employer from the government (up to a maximum claim of £1,541.75)
  • This will leave employees with a minimum of 73% of normal hours, up to a maximum of £3,125 per month
  • This is up to a maximum claim of £1,541.75
  • 'Normal Hours' is based on the greater of last pay period ending before 23 September 2020 or last pay period before 19 March 2020.
  • For variable hours, 'Normal Hours' is based on the greater of wages earned in the same calendar period in the 2019/20 tax year; average wages payable in the tax year 2019/20; or the average wages payable from 1 February 2020 to 23 September 2020.

JSS Closed - How much can I claim?

  • Employees will receive two thirds of their normal pay, funded by the government, up to a maximum of £2,083.33 per month
  • 'Normal Hours' is based on the greater of last pay period ending before 23 September 2020 or last pay period before 19 March 2020.
  • For variable hours, 'Normal Hours' is based on the greater of wages earned in the same calendar period in the 2019/20 tax year; average wages payable in the tax year 2019/20; or the average wages payable from 1 February 2020 to 23 September 2020.

Job Support Scheme Criteria

The following criteria is applicable to both the JSS Open and JSS Closed:

  • The Job Support Scheme will be availble from December (once the CJRS has ended) and is set to end 30 April 2021
  • It is set to be reviewed in January 2021, so could be subject to change
  • Employees do not have to have been furloughed previously in order to claim
  • Employees must have been on the businesses PAYE Scheme, with a relevant RTI Submission having been made prior to 23 Sepetember 2020
  • Employers can top up employee wages to 100% if they wish
  • Employers NIC and Pension contributions are not covered under the scheme and will still need to be paid by the employer
  • Employer must have paid the employee in full prior to making a claim under the JSS
  • Employees can check if a claim has been made for them under the JSS on their Personal Tax Account

How to make a claim under the Job Support Scheme

Employers will be able to make their first claim from 8th December 2020, covering wages payments made in November. Subsequent months will then follow a similar pattern. For our clients, we will claim in a similar way to the Job Retention Scheme.

Limited Company Directors

The JSS is available to Directors of Limited Companies receiving a small salary in a similar way to the JRS. The maximum claim for a Limited Company Director under JSS Open will be £361.63 per month and the maximum claim available under JSS Closed will be £488.67 per month.

What to do now?

Now that this information has been released, businesses can start to make plans should they be forced to close. The full guidance is available here. Should you have any questions, feel free to give the team a call.

Stay Safe,

The Diverso Team

Comments:

There's no comments for this item. Why not leave the first comment below?

    Leave a comment:

    Ready to talk further?

    Get in touch

    X

    Stop bugging me!

    Register for our regular newsletter and stay up to date with all the exciting new stuff and goings on at Diverso. Rest assured, we'll look after your data as detailed in our privacy policy.