Job Support Scheme Grant - JSS
Table of Contents
What is Job Support Scheme?
Job Support Scheme is due to replace the Job Retention Scheme (JRS, Furlough Scheme) in November 2020. Chancellor Sunak first announced JSS on 24 September 2020, but there have been significant changes since then. JSS will be open from 1st November and run for 6 months until 30 April 2021.
What are the types of Job Support Scheme
There are 2 types of Job Support Scheme (JSS);
- JSS Open – For businesses that are open but facing decreased demand.
- JSS Closed – For businesses that are legally required to close their premises as a direct result of coronavirus restrictions set by one or more of the four governments of the UK.
Job Support Scheme (Open)
- Employers will have to provide at least 20% of usual hours.
- Employees will receive two third (66.67%) of maximum 80% hours not worked. This will be financed by (a) employer: 5% with a maximum of £125 per month and (b) government 61.67% with a maximum of £1,541.75 per month.
- Employee will receive at least 73% of normal wage. This will constitute of 20% of hours worked plus 53% (66.67% of maximum 80% of hours not worked).
- Employer will pay at least 24%. This will constitute of 20% hours worked plus 4% (5% of maximum 80% hours not worked).
- Government will pay 49% of usual wage. This will constitute 61.7% (66.67% less 5%) of maximum 80% hours not worked.
Job Support Scheme (Closed)
- Each employee will receive two thirds of their normal pay, with a maximum of £2,083.33 per month.
- Employer is not required to top this up but may do so, if they wish.
- Employers: Need to be enrolled for PAYE and need to have a UK bank account.
- Employees: Need to be on payroll between 6 April 2019 and 23 September 2020. This implies an RTI FPS must have been made to HMRC during this period.
Conditions of Job Support Scheme (JSS)
- JSS can not be claimed for redundant employees or for those who are serving a contractual or statutory notice period.
- Large employers (250 employees or more) can not make capital distribution like dividends.
- JSS will not cover National Insurance Contributions or pension contribution.
- Employers must have paid the full amount claimed for an employee’s wages to the employee before each claim is made.
How to claim Job Support Scheme JSS?
- First claim can be made on 8th December 2020 on Gov.uk
- Wages for pay period ending November will be claimed on 8th December, with subsequent months following the same pattern.
- Final claims for pay period ending in April 2021 will be made in early May 2021.
Fraudulent claims of Job Support Scheme (JSS)?
- HMRC may withheld the payments of suspected JSS claims
- If JSS claim contains incorrect information, any overpayments must be paid back to HMRC.
- Penalties of up to 100% of the overclaimed amount may by applied to the fraudulent JSS claims.
- HMRC is planning to publish the names of the employers using this scheme. Members of public will be able to report employers to HMRC, if they suspect the scheme abuse on part of employer/business.
Our service to you
If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.