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When Rishi announced the new Job Support Schemes (JSS) it seems to have caused more confusion and to be honest, I have my head in the flexi-60% grant-furlough scheme still let alone cope with another scheme and calculations. However I have managed to get some time in between half-term , cash flow projects and furlough grants to get an understanding of what this might mean for businesses. If you need to chat anything through, you can always book a call with me at a convenient time to suit you.
From 1st November there will be two different types of Job Support schemes dependant on your circumstances – JSS Open or JSS Closed. Both schemes will run from the 1st November to the 30th April 2021 but be aware there is a condition review in January 2021. For detailed guidance from the government click here for a summary, read on!
What is the "JSS Open" scheme?
This scheme will be for businesses who are open and trading but on reduced hours. Under the JSS Open scheme your employee must be working at least 20% of their usual hours.
In total, an employee who works 20% of their contracted hours receives 73.33% of their pay and foregoes 26.67% of their normal pay. This breaks down to:
20% of pay for worked time (covered by employer)
4% (5% x 80%) of pay for non-worked time, capped at £125 per month (covered by employer)
49.33% of pay (61.66% x 80%) for non-worked time, capped at £1,541.75 per month (covered by Government)
These reduced hours must be agreed in writing with the employee and the employer must pay Employer's National Insurance and workplace pension on all the wages that the employee receives. However, the employer must use the PAYE scheme and have a UK bank account but you do not need to have used any of the schemes before.
What is the "JSS Closed" scheme
Under this scheme businesses can claim a grant to cover for two thirds of the normal pay of employees who cannot work at all, up to a maximum of £2,083.33 per month and the JSS Closed is designed for businesses that are legally required to close.
The employee will have to give up one third of their wages and will agree to the change in their employment contract which must be in writing as along as they are not already on a zero hours contract.
These schemes are complex and will be subject to checks and scrutiny by HMRC. We strongly recommend that you contact your accountant or payroll provider as soon as possible if you are proposing to claim under either of these schemes.
If you need to check through these schemes or assistance in claiming email active@activeledgers.co.uk or book a call at a convenient time.