Update: 1 November 2020
UK government announced that the Job Support Scheme, which was due to start on 1 November 2020, has been postponed as the Coronavirus Job Retention Scheme is being extended.
Update: 22 October 2020
On 22 October 2020, UK Government announced several alterations to the current iteration of the scheme as follows:
JSS Open 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 working 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 the 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.
JSS Closed will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set out by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from heir premises and those restricted to providing food and/or drinks outdoors. 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.
Employers can make their first claim under JSS in arrears from 8 December 2020 for pay periods ending and paid in November.
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.
Further guidance and details are expected by the end of October 2020.
Update: 9 October 2020
On 9 October 2020, the Government announced that the Job Support Scheme will be expanded to include support for businesses required to close their doors as a result of coronavirus restrictions. The details of the expanded scheme are summarised below:
- If a business is forced to close by law due to Covid-19 restrictions, then the Government will pay two thirds of employee wages, up to £2,100 per month;
- Employers will still need to pay Class 1 employer NICs and pension contributions;
- Employees must be off work for at least 7 consecutive days;
- Payments for this scheme will be paid in arrears from 1 December and claims made via an HMRC claims service;
- HMRC will review the scheme in January 2021 and are due to issue further guidance in due course.
Further details can be found on external link here.
Update: 6 October 2020
To find out if you're eligible to claim the Job Retention Bonus click the external GOV.UK link here. Access to claim the Job Retention Bonus will go live between 15 February 2021 and 31 March 2021. If you use an agent who is authorised to do PAYE online for you, they will be able to claim the Job Retention Bonus on your behalf and guidance will be updated by the end of January 2021 with details on how agents can claim the bonus.
What is it?
The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The scheme will open on 1 November 2020 and run for 6 months.
The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.
The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Who is eligible?
All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the Coronavirus Job retention Scheme.
All small and medium-sized businesses are eligible, but larger businesses must show their turnover has fallen during the crisis.
Employees must be on an employers' PAYE [payroll on or before 23 September 2020. A RTI (Real Time Submission) notifying payment to that employee to HMRC must have been made on or before 23 September 2020.
For first 3 months of the scheme, the employee must work at least 33% of their usual hours. After 3 months, the Government will consider whether to increase this minimum hours threshold.
Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month, but short-time working arrangement must cover a minimum period of seven days.
What does the grant cover?
For every hour not worked by the employee, the Government and employer will pay a third each of the usual hourly wage for that employee. The Government contribution will be capped at £697.92 a month.
Grant payments will be made in arrears, reimbursing the employer for the Government's contribution. The grant will not cover Class 1 employer NICs or pension contributions - these contributions will remain payable by the employer.
"Usual wages" calculations will follow a similar methodology as for the Coronavirus Job Retention Scheme. Employees who have previously been furloughed will have their underlying usual pay and/or hours used to calculate usual wages, not the amount they were paid whilst on furlough.
Employers must pay employees their contracted wages for hours worked and the Government and employer contributions for hours not worked. Government expectations are that employers cannot top up their employees' wages above the two-thirds contribution to hours not worked at their own expense.
What does it mean to be on reduced hours?
- The employee must be working at least 33% of their usual hours
- For the time worked, employees must be paid their normal contracted wage.
- For time not worked, the employee will be paid up to two-thirds of their usual wage
- Employees cannot be made redundant or put on notice during the period within which their employer is claiming the grant for that employee.
How can I claim?
The scheme will be open from 1 November 2020 to the end of April 2021. Employers will be able to make a claim online through Gov.uk from December 2020. They will be paid on a monthly basis
Grants will be payable in arrears. A claim can only be submitted in respect of a given pay period, after payment to the employee has been made and that payment has been reported to HMRC via a RTI return.
HMRC checks
HMRC will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information. Grants can only be used as reimbursement for wage costs actually incurred.
Employers must agree the new short-time working arrangements with their staff, make any changes to the employment contract by agreement and notify the employee in writing. This agreement must be made available to HMRC on request.
It is Government's intention that employees will be informed by HMRC directly of full details of the claim.
UK government announced that the Job Support Scheme, which was due to start on 1 November 2020, has been postponed as the Coronavirus Job Retention Scheme is being extended.
Update: 22 October 2020
On 22 October 2020, UK Government announced several alterations to the current iteration of the scheme as follows:
JSS Open 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 working 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 the 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.
JSS Closed will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set out by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from heir premises and those restricted to providing food and/or drinks outdoors. 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.
Employers can make their first claim under JSS in arrears from 8 December 2020 for pay periods ending and paid in November.
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.
Further guidance and details are expected by the end of October 2020.
Update: 9 October 2020
On 9 October 2020, the Government announced that the Job Support Scheme will be expanded to include support for businesses required to close their doors as a result of coronavirus restrictions. The details of the expanded scheme are summarised below:
- If a business is forced to close by law due to Covid-19 restrictions, then the Government will pay two thirds of employee wages, up to £2,100 per month;
- Employers will still need to pay Class 1 employer NICs and pension contributions;
- Employees must be off work for at least 7 consecutive days;
- Payments for this scheme will be paid in arrears from 1 December and claims made via an HMRC claims service;
- HMRC will review the scheme in January 2021 and are due to issue further guidance in due course.
Further details can be found on external link here.
Update: 6 October 2020
To find out if you're eligible to claim the Job Retention Bonus click the external GOV.UK link here. Access to claim the Job Retention Bonus will go live between 15 February 2021 and 31 March 2021. If you use an agent who is authorised to do PAYE online for you, they will be able to claim the Job Retention Bonus on your behalf and guidance will be updated by the end of January 2021 with details on how agents can claim the bonus.
What is it?
The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The scheme will open on 1 November 2020 and run for 6 months.
The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.
The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Who is eligible?
All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the Coronavirus Job retention Scheme.
All small and medium-sized businesses are eligible, but larger businesses must show their turnover has fallen during the crisis.
Employees must be on an employers' PAYE [payroll on or before 23 September 2020. A RTI (Real Time Submission) notifying payment to that employee to HMRC must have been made on or before 23 September 2020.
For first 3 months of the scheme, the employee must work at least 33% of their usual hours. After 3 months, the Government will consider whether to increase this minimum hours threshold.
Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month, but short-time working arrangement must cover a minimum period of seven days.
What does the grant cover?
For every hour not worked by the employee, the Government and employer will pay a third each of the usual hourly wage for that employee. The Government contribution will be capped at £697.92 a month.
Grant payments will be made in arrears, reimbursing the employer for the Government's contribution. The grant will not cover Class 1 employer NICs or pension contributions - these contributions will remain payable by the employer.
"Usual wages" calculations will follow a similar methodology as for the Coronavirus Job Retention Scheme. Employees who have previously been furloughed will have their underlying usual pay and/or hours used to calculate usual wages, not the amount they were paid whilst on furlough.
Employers must pay employees their contracted wages for hours worked and the Government and employer contributions for hours not worked. Government expectations are that employers cannot top up their employees' wages above the two-thirds contribution to hours not worked at their own expense.
What does it mean to be on reduced hours?
- The employee must be working at least 33% of their usual hours
- For the time worked, employees must be paid their normal contracted wage.
- For time not worked, the employee will be paid up to two-thirds of their usual wage
- Employees cannot be made redundant or put on notice during the period within which their employer is claiming the grant for that employee.
How can I claim?
The scheme will be open from 1 November 2020 to the end of April 2021. Employers will be able to make a claim online through Gov.uk from December 2020. They will be paid on a monthly basis
Grants will be payable in arrears. A claim can only be submitted in respect of a given pay period, after payment to the employee has been made and that payment has been reported to HMRC via a RTI return.
HMRC checks
HMRC will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information. Grants can only be used as reimbursement for wage costs actually incurred.
Employers must agree the new short-time working arrangements with their staff, make any changes to the employment contract by agreement and notify the employee in writing. This agreement must be made available to HMRC on request.
It is Government's intention that employees will be informed by HMRC directly of full details of the claim.
