***Deferred until the extended furlough scheme ends, presumably 2 December 2020***
The new Job Support Scheme (JSS) was due to be introduced from November 2020 to replace the existing Coronavirus Job Retention Scheme (CJRS) or ‘furlough scheme’. However, the furlough scheme has now been extended and will continue until December.
With the furlough scheme originally due to end in October 2020, there were concerns that employers would be left unsupported during the ongoing Covid-19 crisis. The aim of the JSS is to support ‘viable businesses’ by allowing them to move employees to part-time hours, with the government funding a percentage of those part-time payroll costs.
Whereas the furlough scheme initially covered 80% of the employees wages (and will return to 80% during November and the current UK lockdown), the JSS will provide far less support – only funding up to two-thirds of the employee’s wages.
How does the Job Support Scheme work?
The JSS is designed to support viable jobs, and is open to all small and medium-sized businesses. Larger businesses will only qualify when their turnover has fallen significantly as a result of the pandemic.
At present, the scheme will cover wages for staff forced to reduce their hours down to part-time and will also cover wages for staff that can’t work due to a government-enforced Tier 2 or 3 local lockdown. The JSS guidance has already been updated three times prior to the official launch of the scheme but, at present, the HMRC guidance is as follows:
- Under the new scheme, for every hour not worked, the employee will be paid up to two-thirds of their usual salary.
- The government will provide up to 66.67% of wages for hours not worked, up to £2,083.33 where your business is forced to close for local lockdown regulations(more than doubling the maximum payment of £697.92 under the previous rules). The cap is set above median earnings for employees in August at a reference salary of £3,125 per month.
- You can still use this scheme even if you’ve not previously participated in the Coronavirus Job Retention Scheme. But employees must have been included on a Real Time Information (RTI) submission notifying payment in respect of that employee, and this must have been submitted to HMRC on or before 23 September 2020.
Talk to us about claiming JSS support
If you’re confused about the Job Support Scheme and the extension to the furlough scheme (and we don’t blame you if you are), we can help you understand the latest changes and how to apply for the grant.
Where we process payrolls for you, we can calculate any grant applicable to your affected employees, and can submit claims on your behalf. Let us know if you need any help calculating amounts payable under the scheme.
Get in touch to find out more about the JSS.