Expansion of the Job Support Scheme

On Friday 9 October the Government announced an expansion of the Job Support Scheme (JSS) which commences on 1 November.  This will last for 6 months and is aimed to provide temporary support to businesses whose premises have been legally required to close or to provide only delivery and collection services from their premises as a direct result of coronavirus restrictions.

This will be a UK wide scheme where the government will support eligible businesses by paying two thirds of each employee’s salary (or 67%), up to a maximum of £2,100 per month.

Under the scheme, employers will not be required to contribute towards wages and only asked to cover employer’s NIC and pension contributions.  It is estimated that around half of potential claims are likely not to incur employer’s NIC or auto-enrolment pension contributions.

Employers will be able to apply for the JSS, including the new expansion, even if they have not previously used the Coronavirus Job Retention Scheme (CJRS).  Payment of grants will be in arrears from early December with the scheme being reviewed in January.  The claims will be made through a HMRC service but will not be live until early December.

Employees must be off work for a minimum of seven consecutive days to be eligible.

Due to the timing of the new scheme this will not support businesses that have been forced to close this month (October), they will need to claim employee costs for Furloughed staff through CJRS which is less generous.

Further details on the expanded JSS can be found on this factsheet

Job Support Scheme Expansion for Closed Business Premises

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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