Job Support Scheme Update
With the Chancellor announced changes to the Job Support Scheme (JSS) we wanted to outline key points and changes to previous set out rules. These are as follows:
- The JSS scheme will run from 1 November 2020 for 6 months
- To be eligible for the scheme employees must work at least 20% of their usual hours (this was previously set at 33%)and this is paid by the employer
- Of the non-worked element the employer must also pay 5% (this was previously 33%)
- The government will then pay 61.67% of the non-worked element, capped at £1,541.75 per month (this was previously 33% capped at £697.92)
- Employers are responsible for covering the costs of Employers NI and pension contributions on both the worked and non-worked elements
- Employees must be on an employer’s PAYE payroll on or before 23 September 2020
- Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria. Updated guidance from HMRC will be issued at the end of January 2021. (we will send out more information on the bonus once available).
Job Support Scheme Tier Three
The JSS was also extended for UK businesses whose premises are legally required to shut as part of local or national restrictions:
- The government will pay 67% of each employees’ salary up to a maximum of £2,100 a month for a period of six months.
- Employers are not required to contribute to salary costs but can do so if they wish, however they will need to pay NICS and pension contributions.
- Employees must be off work for a minimum of seven consecutive days.
- Businesses that are already closed, due to being legally required to shut as part of local or national restrictions, on 1 November 2020 can claim with effect from 9 October 2020.
Self Employed grant
- The third SEISS grant will be based on 40% of average trading profits (capped at £3,750) and businesses temporarily unable to trade due to coronavirus will be eligible.
- Businesses temporarily unable to trade due to coronavirus were to be excluded from claiming the third and fourth grants but will now be eligible.
- Claimants must have been previously eligible for the first and second grant and must declare that they intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus, or
- were previously trading but are temporarily unable to do so due to coronavirus.
- The scheme unfortunately has not been extended to businesses that were not eligible for the first and second grants
- Information from 2019/20 returns will not be taken into account (claims are based upon previous year tax returns).
- A date for when applications can be made has not yet been released; we will advise once HMRC release a date
Tier two and three grants
Extra help is also being offered to businesses, depending on which tier they are in.
- Tier three businesses qualify for a grant of up to £3,000 a month if they are affected by the restrictions, whether they are open or closed
- Businesses with a rateable value of £15k or under can claim grants of £1,300 per month
- Businesses with a rateable value of between £15k-£51k can claim grants of £2,000 per month
- Businesses who have a rateable value of £51k can claim grants of £3,000 per month
- Hospitality, accommodation and leisure firms in tier two and three areas will be eligible for a grant of up to £2,100 per month
- The grant can also be claimed retrospectively if businesses have had to suffer through restrictions similar to Tier 2 since August
- Businesses with a rateable value of £15k or under can claim grants of £934 per month
- Businesses with a rateable value of between £15k-£51k can claim grants of £1,400 per month
- Businesses who have a rateable value of £51k can claim grants of £2,100 per month
For further information or advise on this please do not hesitate to contact us.