At the end of October Rishi Sunak announced the Job Support Scheme as a replacement for the Job Retention Scheme which ended on 31st October. We’ve digested the factsheet and highlighted the bits employers need to know.
It’s a bit like the job retention scheme….
- Eligible employees must have been on the RTI submissions prior to 23rd September.
- Employees can cycle on and off the job support scheme like flexible furlough with a minimum reference period of 7 days.
- There is a cap, although this is now £697.92 per month.
- Usual wages will be calculated in a similar way to the JRS although we await detailed guidance.
But there are some differences….
- The scheme will run from 1st November 2020 to 30th April 2021.
- The scheme is open to employers and employees regardless of whether they have used the job retention scheme.
- Large employers will need to show decreased turnover and would not be expected to be taking dividends or share buybacks if taking advantage of the scheme.
- Employers CANNOT top up wages for hours not worked. We need detailed guidance, but this may mean that the scheme cannot be used for holiday pay as this would usually be required to be topped up to full pay.
- Cannot be used for employees who have been made redundant.
- Claims can only be made after employees have been paid and RTI submission made. The portal will not open until December 2020.
- HMRC expects to inform all employees on JSS of the details of the claim.
- Employees paid via the JSS will not be excluded from the JRS bonus as long as they are eligible.
Employers looking to take advantage of the scheme will need to agree new short time working arrangements in writing with employees. Records of these need to be kept for HMRC. If you are considering using the JSS please get in touch to arrange a review meeting.