COVID-19

Coronavirus Job Support Scheme

The Job Support Scheme has been updated and re-launched starting on 1st November to help employers and small business owners retain their staff through the winter months.

You can apply for the Job Support Scheme even if you have not applied for the Job Retention or furlough scheme.

The Job Support Scheme (JSS) grant funding is available until April 2021, and the funding amounts will be reviewed in January.

Overview of JSS

  • There are now two job support schemes available:

    • The original one designed for businesses that are legally required to close is now called JSS Closed, and

    • for businesses that remain open but with employees working reduced hours is called JSS Open

The schemes may be used by the same business concurrently for different employees if it has premises in different areas, some of which are completely closed.

A business could also move between the two schemes as the restrictions for the area it operates in change.

The JSS Closed scheme - Do you qualify?

The JSS Closed can only be used by businesses which are required to close by the coronavirus regulations, such as under the tier 3 restrictions in England, or the similarly regulations in Wales, Scotland or Northern Ireland.

Where premises are restricted to delivery or collection services, or to serving food outdoors, they count as “closed” if located in a restricted area.

Funding available for JSS Closed:

  • Under this scheme the grant will cover two thirds of the normal pay of employees, who cannot work at all, up to a maximum of £2,083.33 per month.

  • The employee must give up one third of their wages, and will have to agree to that change in their employment contract in writing if they are not already on a zero hours contract.

Example:

Mark is a waiter employed by Pizza Slice, on a salary of £25,000 or £2,083.33.

Pizza Slice is closed as it is located in a tier 3 zone in England.

Pizza Slice can claim for two thirds of Mark’s monthly salary or £1,388.88 under the JSS Closed.

Pizza Slice will have to pay the employer’s NIC on that salary plus the minimum employer’s contribution the workplace pension, if Mark has not opted out of that scheme.

Mark will receive £1,388.88 before tax and NIC deductions, which is two thirds of his normal salary.

The JSS Open -

JSS Open - do you qualify?

The JSS Open is an amendment to the initial scheme announced by the government, but with changes now in place since the Chancellor’s announcement on 22 October.

Under JSS Open, to be eligible:

  • The employee must work at least 20% of their usual working hours. Usual hours calculation is calculated as per the Coronavirus Job Retention or furlough scheme. This amounts to the equivalent of one day of a normal five-day working week. This reduction in hours must be agreed in writing with the employee.

  • The employer must pay for all of the worked hours at the employee’s agreed salary, plus up to 5% of the value of the hours not worked, up to £125 per month, but the employer may top-up this figure if they wish to.

  • The employee salary will be capped at £3,125 per month

  • The JSS Open grant will cover up to two thirds of the hours not worked, capped at £1541.75 per month.

  • The employer must pay all of the employer’s national insurance (NIC) on all of the wages the employee receives plus any employer’s minimum contribution to a workplace pension.

An employee who works for 20% of their contracted hours will receive:

  • 20% of pay for worked time

  • 4% of pay for non-worked time, capped at £125 per month

  • 49.33% of pay for non-worked time, capped at £1541.75 per month

In total, the employee receives 73.33% of their pay and foregoes 26.67% of their normal pay. 

Example

Sarah is a market researcher employed by Small Business Marketing Ltd on an annual salary of £40,000, or £3,333 per month. In a normal month she would work 225 hours, which is £14.81 per hour.

Sarah has agreed to work 45 hours per month for £666.45.

To qualify for the JSS Open, Small Business Marketing Ltd must pay Sarah for 5% of her remaining normal hours: £133.29 (9 x £14.81). The 5% is capped at £125 per month, so Small Business Marketing Ltd will pay this full amount to Sarah.

The JSS grant should cover the cost of 61.67% of the total 180 non-working hours: £1,643.91 (111 x £13.33).

Sarah receives pay of £2,435.36 (666.45 + 125 + 1,643.91), which is 73.06% of her normal pay. This is slightly less than the 73.33% as the employer contribution is capped at 5%.

Small Business Marketing Ltd must bear the cost of £791.45 (666.45 + 125), plus the employer’s NIC on the full amount paid of £2,435.36 and any relevant workplace pension contributions for Sarah.

ELIGIBILITY

Employers

  • 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

  • A claim can’t be submitted for a particular employee until that employee’s wages have been paid and reported under RTI. This is to reduce fraud, but means the employer has to fund the entire payment to the employee in advance.

Employees

  • Employees must be on the payroll of the employer between 6 April 2019 and 23 September 2020, and included on at least one RTI return in that period that was submitted before midnight on 23 September 2020

  • Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month, but each short-time working arrangement must cover a minimum period of seven days.

  • Employees must be employed on 23 September 2020 but if the employee has been made redundant since that point and rehired by the same employer, they are an eligible employee for JSS grant.

  • Any person who is taxed as an employee is an eligible employee for JSS, which would include contractors subject to IR35 and agency workers.

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 from 8 December 2020.

  • They will be paid on a monthly basis.

  • Grants will be payable in arrears meaning that 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 an RTI return.

  • The grant will not cover Class 1 employer NICs or pension contributions, although these contributions will remain payable by the employer.

  • “Usual wages” calculations will follow a similar methodology as for the Coronavirus Job Retention Scheme. Full details will be set out in guidance shortly.

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.

  • HMRC will publish the names of the employers which use either JSS Open or JSS Closed.

  • Employees will be able to check if their employer has made a JSS claim relating to them via their personal tax account. This feature is designed to prevent employers from claiming JSS while also asking employees to work.

A new factsheet sets out a number of examples, but further legislation and more guidance is expected very soon.

Please get in touch in the meantime if you have any questions.

Please have a look at the following pages to find exactly what you are looking for: