Updates to the Job Support Scheme

Author: George Ian Hope BAcc(Hons), MSc(IT), FCCA, CGA, CPA
https://www.linkedin.com/in/gihope
Ian is a general practicing member of the Association of Chartered Certified Accountants with fellowship
status (FCCA). He is also a member of the Certified General Accountants Association of Canada (CGA),
and a member of Chartered Professional Accountants of Canada (CPA).

Job Support Scheme

The Government has published detailed information about the scheme HERE.

In summary this is a new grant scheme to operate from 1^st November 2020 for 6 months. The purpose of the scheme is to help businesses retain employees in times of low demand by allowing the employees to recover a percentage (2/3) of the wages that they would otherwise have lost by not working.

Summary of the main points:

• Employers are classified as either:
  • ‘Open’ – Applies to employers that can continue to operate, but under reduced demand.
  • ‘Closed’ – Applies to employers that have been “legally required to close their premises as a direct result of coronavirus restrictions set by the Government”.

Process for ‘Open’ Employers

• Employees must work at least 20% of normal hours.
• Businesses must pay employees for the time they work and also 2/3 of the time for when they don’t work via payroll.
• The time NOT worked will be funded as follows:
  • 1/3 by employee as lost pay.
  • 5% by employer (2/3 initially via Payroll)
  • 67% by employers claiming the Government grant scheme
• Maximum grant capped at £1,541.75 per month.

Process for ‘Closed’ Employers

• The time NOT worked will be funded as follows:
  • 1/3 by employee as lost pay.
  • Nil by employer (2/3 initially via payroll).
  • 2/3 by employers claiming the Government grant scheme
• Maximum grant capped at £2,083.33 per month.
• Employers will be able to submit claims in arrears from 8^th December 2020.
• JSS is separate from Coronavirus Job Support Scheme (CJRS) which ends in October, so those who didn’t qualify for CJRS may potentially qualify for this scheme provided RTI submissions were made between 6^th April 2019 and the announcement of the scheme on 23^rd September 2020 for the employee.
• The JSS grant will not cover National Insurance Contributions (NICs) or pension contributions.
• Employers cannot claim under both schemes (‘Open’ and ‘Closed’) for the same employees at the same time.

Contact us if you need further information.