13 October
By Claire Featherstone
Categories: Government/Corporate/Business/HMRC/Industry News/COVID-19

Expansion of Job Support Scheme and Increased Grants for Businesses

Expansion of Job Support Scheme and Increased Grants for Businesses
 
On Friday 9th October, the Chancellor announced an expansion to the Job Support Scheme (JSS) specifically for those employees working in UK businesses that may be formally or legally asked to close by law due to coronavirus restrictions.
 
The support will be available from 1 November as part of the Job Support Scheme. Until that date, businesses who are asked to close can continue to use the Coronavirus Job Retention Scheme (CJRS) to furlough employees.
 
Under the scheme, the Government will pay two thirds of an employee’s normal wages up to a maximum amount of £2,100 per month where they are unable to work because their employer has been forced to shut by law due to Coronavirus restrictions.
 
The employer will not be required to contribute towards the 67% salary that will be paid by the Government but will need to cover employer National Insurance and pension contributions. Employers may top up their employees’ salaries should they wish to do so. 
 
Businesses must be instructed, by law, to cease work for a minimum of 7 consecutive (or calendar) days. The scheme will pay a grant to the employer, calculated on the number of eligible employees who have been instructed to and cease work at the relevant premises. Employers need to ensure that payment to the employee has been notified to HMRC under an RTI submission before 24 September 2020. An employee can return to work at a later date.
 
As with the Job Retention Scheme, employers must agree the new scheme with the relevant 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. 
 
At the point an employee has been placed on notice of redundancy, their employer can no longer claim a grant under the Job Support Scheme for that employee.
 
Claims must be made monthly in arrears from December 2020.  The scheme will run for 6 months, with a review being made in January 2021.
 
Increased Grants for Businesses
 
In England, the Chancellor has also confirmed that increased grants of up to £3,000 per month paid each fortnight will be made available to the businesses themselves who have a closure forced upon them. The level of support will be based on rateable values, as follows:
 
Rateable value of £15,000 or below                              £1,300 per month
Rateable value between £15,000 and £51,000             £2,000 per month
Rateable value over £51,000                                         £3,000 per month
 
We’re here to help
 Our dedicated Naylor Wintersgill team are working hard to keep you up to date with all the latest news and developments in light of the Coronavirus crisis and are here to help and support you during these difficult times. We have only been able to touch on some of the key points of the announcements made on 9 October 2020 and this could be subject to change as further information is announced in due course.
 
Please do not hesitate to get in touch with the Naylor Wintersgill team on 01274 733184 or email hello@naylorwintersgill.co.uk we will be happy to discuss any queries or concerns you may have.