With all the new coronavirus restrictions and the government’s new Job Support Scheme coming into force in 10 days Team Flex believe that it is absolutely essential that you are ready and set to hit the ground running.
So what are the key points of the new scheme?
Quite simply the scheme provides two different levels of support, depending on whether a business is told to shut as a result of coronavirus restrictions or can remain open.
The first level is for businesses who are affected by Covid but are able to remain open. Employers of any size with a UK bank account and UK PAYE schemes can use the Job Support Scheme. Large businesses will need to complete a financial assessment to demonstrate that their turnover is lower than before due to Covid. (Larger businesses who receive the JSS are expected not to be making any capital distributions whist accessing the grant) Both levels are open to employers who did not use the previous furlough options under the scheme.
The second level was introduced to support businesses forced to shut down following a regional or local COVID lockdown. This additional funding will benefit industries within the hospitality sector (pubs, bars, restaurants) who have since March been the most heavily affected sector. The second level or expansion will offer assistance to businesses who cannot offer any work to their employees but, from the 1st of November 2020, are unable to use the Job Retention Scheme because of its closure and are also unable to use the original Job Support Scheme due to their inability to meet the minimum working hours threshold.
We are still waiting to hear exactly how this will work but what we know so far is:
- The second level or Lockdown JSS will initially run for 6 months with a review scheduled for January 2021.
- An employer does not need to have previously used the Job Retention scheme to be eligible to claim the Premise Closure aspect of the Job Support Scheme
- Employers must agree entry into this scheme with employees, making contractual changes with the employee by agreement and notifying the employee in writing. Its worth remembering that HMRC are entitled to see the agreement upon request.
- The Government will pay two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month. Employers will not be required to contribute towards wages but will have to cover NICS and pension contributions.
- Employers will make wage claims via a HMRC online portal which will be available from early December. Claims must not overlap and must be made monthly in arrears.
- Payments to employers will be made monthly in arrears.
- Employees cannot be given notice of redundancy or made redundant during the period which the employer is claiming from the JSS (Premises Closure) for that employee.
It is worth noting that at the moment that any businesses who are require to close as a result of specific workplace outbreaks by local public health authorities are not eligible for the scheme, and that HMRC intend to publish the name of employers who have used the scheme.
Team Flex will be watching and waiting for the next Government update and will share the information with you as soon as we receive it- if in the meantime you need any help or have questions please give us a call 01626 298968 or drop us an email info@flex-consultancy.co.uk
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