UPDATED NEW JOB SUPPORT SCHEME (JSS)

The Job Support Scheme (JSS) replaces the Job Retention (Furlough) Scheme, which ends 31st October.

JSS will open on 1 November and run for six months, until 30 April 2021. The government has said it will review the terms of the scheme in January 2021.

In recognition of the challenging times ahead, the UK government announced yesterday it will significantly increase the generosity and reach of its winter support schemes to ensure livelihoods and jobs across the UK continue to be protected in the difficult months to come, supporting jobs and helping to contain the virus.

There are two variations to JSS – one for businesses that are open and one for businesses that have been forced to closed;

JSS Open

This will provide support to businesses that are open where employees are working shorter hours due to reduced demand. Employees will need to work at least 20% of their usual hours. Employers will continue to pay employees for the hours they work, and the UK government will pay a contribution of 61.67% of the usual pay for hours not worked, up to a maximum of £1,541.75 per month. Employers will pay 5% of the usual pay for hours not worked, up to a maximum of £125 per month, and can top this up further if they choose. This means employees should receive at least two thirds of their usual pay for hours not worked.
The caps are reduced according to the proportion of hours not worked. Employers will need to cover all employer National Insurance and pension contributions.

Further guidance on this is due to be released on GOV.UK shortly.

JSS Closed

This will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from their premises, and those restricted to providing food and/or drinks outdoors.

For JSS Closed, the UK government will fund two thirds of employees’ usual wages for time not worked, up to a maximum of £2,083.33 per month. Employers will not be required to contribute, but they can top up the government’s contribution if they choose to. Employers will still need to cover all employer National Insurance and pension contributions.

JSS claims will be made in arrears. The first claim can be made from 8 December, for pay periods ending and paid in November.

We’ll post an update blog when HMRC release more information about how to make a claim by the end of this month.

Employees will be able to check if their employer has made a Job Support Scheme claim on their behalf through their online Personal Tax Account.  Employees can set up a Personal Tax Account on GOV.UK, by searching ‘Personal Tax Account: sign in or set up’.

Source: HMRC help & support