Expansion Of The Job Support Scheme
Help for businesses in local lockdowns ...
POSTED BY ROGER EDDOWES ON 15/10/2020 @ 8:00AM
With the new three-tier local restrictions in place, the Chancellor has expanded the Job Support Scheme for businesses forced to close their doors. The Government are hoping this will calm fears from a second spike ...
If your business is forced to close due to local lockdown restrictions, the Job Support Scheme can really help!
The Job Support Scheme was designed to come into force as soon as the Governments furlough scheme ended in October. Although the level of support was reduced considerably, it still made contributions to an employee's salary.
"The Job Support Scheme has expanded and now pays 2/3 of an employee's wages for businesses that have to close!"
Reworking the Job Support Scheme means the Government is trying to help businesses survive a local lockdown without laying employees off; however, they still have to pay any employer's NIC and minimum pension contributions on any wages.
Since the start of the Coronavirus pandemic, the Government has tried to protect jobs throughout the country and has been very generous in supporting businesses to keep people employed. This new style of restricted furlough scheme will extend on that. The Government now believes it has an 'economic toolkit' ready to help the right businesses with the right support at the right time.
For a business to be eligible for support, employees must be furloughed for at least 7-days at a time. They will then receive 66% of their wages. They must have been on payroll before the 23rd September 2020 and included on an RTI return. The employer pays the wages upfront, also pays the employer's NIC and pension contributions, then claims back the wage part from HMRC. This is capped at £2,100 per month.
"The employee must give up 1/3 of their wages and agree to changes in their employment terms if they're not on zero-hours contracts!"
The Government believes that half of employees will not be paid enough to trigger employer NIC liabilities and pension contributions, so think this is a good way to protect jobs throughout the country.
The online portal for employers to claim under the expanded JSS scheme opens on the 1st December 2020.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about these changes to the job support scheme, call me on 01908 774320, leave a comment below or click here to ping over an email and let's see how I can help.
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About Roger Eddowes ...
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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