Skip to main content

A revised Job Support Scheme (JSS)

You may have seen Nicola Sturgeons announcement during a press conference confirming that Santa is a key worker, and his magic will keep him safe from Coronavirus. Such a relief!

What about the rest of us who don’t have magic to rely on?


Well Rishi Sunak has revised the Job Support Scheme (but not the final month of the Job Retention Scheme), along with an improved Self-Employed Income Support Scheme and an English Grant Scheme addition for those businesses in the hospitality, leisure and accommodation sectors in ‘high alert areas’ who have not been forced to close but have been adversely affected by the Covid-19 restrictions imposed. This can be claimed for retrospective periods, I believe, going back to August but the business may have to wait for the monies to be filtered down to local authorities first and foremost.

Please see below for the latest information:


The Chancellor has been under pressure since his Winter Economy Plan announcement back in late September to go further in providing financial help for businesses. As a result of the ever changing Covid-19 situation, Rishi has proposed the following changes and additions to the support packages.



A revised Job Support Scheme (JSS)

The JSS comes into play from 1st November 2020 and will cover two scenarios.

a) Scenario A. The UK government will top up wages for those employees working shorter hours than their ‘normal hours’ for businesses facing lower demand due to COVID-19.

b) Scenario B. The UK Government will also provide financial support for those employees who cannot work as a result of their employer being forced to close under Covid-19 regulations. This will be through the employer’s PAYE Scheme


Scenario A

  • Employees must work at least 20% of their usual hours.
  • For every hour not worked the Government will cover 61.7%% of employee’s usual pay (capped at £1541.75 pm)
  • For every hour not worked the employer must cover at least 5% of employee’s usual pay.

Scenario B

  • Government will pay two thirds of each employee’s salary up to a monthly maximum of £2,100.
  • No employer salary top up will be required.
  • Business must be required legally to close as part of local or national restrictions and employees must be off work for a minimum of 7 consecutive days.
  • This includes businesses that are required to provide only delivery and collection services from their premises or food and drink outdoors from their premises.


For both Scenario A and B

  • Employee must not be on a redundancy notice.
  • Employer will be reimbursed in arrears.
  • Employer must have a UK PAYE scheme and UK bank account.
  • All small and medium enterprises will be eligible.
  • The employee must have been on the employer RTI submission made to HMRC on or before 23rd September2020.
  • Employers must agree the new scheme with staff in writing, including any changes to the employment contract. This agreement must be made available to HMRC on request.
  • Larger businesses can claim if can demonstrate adversely affected by COVID-19. The government expects large employers not to make distributions while using the scheme.
  • Employers can still claim the Job Retention Scheme bonus in 2021, even if claiming under the Job Support Scheme.
  • The employer will be required to cover the cost of the employers NIC and pension contributions.
  • The claims to be made in arrears through a HMRC Claims portal to be available from early December 2020.


Do not hesitate to get in touch to discuss what this means for you and your business. 


info@togetherwecount.co.uk 

www.togetherwecount.co.uk 

https://g.page/Together-We-Count-Limited?gm 

01273 569088 or 0114 4000119
Labels:

Comments

Post a Comment

Popular posts from this blog

More Information- CJRS and SEISS

As we start another week,  I felt it was important for me to share the latest updates with you regarding the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme. HMRC Recovery Powers HMRC have put together the draft legislative package to reclaim payments under CJRS and the Self-Employed Income Support Scheme. This is subject to a HMRC consultation which comes to an end on 12th June. Under the draft legislation, HMRC will have the power, by way of a 100% tax charge, to recover payments which were either: Not due Not used to pay wages and PAYE Not used to make pension contributions Penalties will be imposed where there has been deliberate non-compliance. This comes at the same time as HMRC have notified that, to date, they have picked up on nearly 2,000 fraudulent CJRS claims to date. This is, in part, due to ongoing calls to their Fraud hotline number 0800 788887 and also through their online whistle-blower report webpage. Big reminder – 10th June last date to
Post a Comment
Read more

Just Checking In...

Together We Count want to help your business thrive, so please let us know what is coming up in the next month, quarter or year. We feel that communication is key, therefore, so we can give you a proactive service please let us know about your up and coming personal and business financial plans. Often, if you tell us about something after the event has taken place it’s too late for us to give you advice. Over the coming months there may be developments in your business or personal affairs where, if you tell us about them in advance, we may be able to help you to: Save time or money Get a better solution Avoid the risks and pitfalls Receive the most favourable tax and accounting treatment Or in some other way get a better result On the other hand, if you tell us about them after the event it may be too late. We would therefore ask you to read this Appendix carefully and advise us immediately if any of the situations listed here become relevant to you. Property and investments Buying or
Post a Comment
Read more

Newsletter 08/03/2021

Well I’m sure for many of you today is a big day as children return to school and we begin the slow transition back to normal life. If you require further explanation on any of the topics in todays newsletter then don’t hesitate to get in touch. Our contact details are at the bottom. Todays topics include: Super Deduction 130% Corporate First Year Allowance Electric Switchover – The benefits In my previous newsletter dated 01/03/2021 I shared with you some benefits of electric cars for your business. I want to revisit that as there is still more to say on the matter. The Corporate Super Deduction Allowance (SDA) - 130% What is it? It is a 130% first year allowance deduction for expenditure incurred in purchasing plant & machinery (P & M)  that would normally qualify for main rate writing down allowance of 18%. When can you claim it? You can claim it for expenditure incurred on or after 1st April 2021 up to and including 31st March 2023. When is the expenditure deemed to be incu
2 comments
Read more