Jobs Support Scheme expansion: What does it mean for you?
The Chancellor Rishi Sunak, is expanding the Jobs Support Scheme. The scheme will be extended to support businesses across the UK who are required to close their premises because of coronavirus restrictions.
- The Job Support Scheme will be expanded to help businesses across the UK required to close their premises due to coronavirus restrictions
- The government will pay two thirds of employees’ salaries to protect jobs over the coming months
- Cash grants for businesses required to close in local lockdowns have also been increased to up to £3,000 per month
Which businesses are eligible?
The scheme applies to all business premises legally required to close.
That includes those told to operate on a collection or delivery only basis. Unlike the Jobs Support Scheme (JSS) for open businesses, all affected firms will pay is the Employer’s National Insurance and employees’ pension contributions. The government will support eligible businesses by paying two thirds of each employee’s salary (or 67%), up to a maximum of £2,100 a month.
The Jobs Support Scheme opens 1 November
Whether for open or closed businesses, the Jobs Support Scheme will open on 1 November. The scheme will:
- Begin on 1 November
- Pay grants from early December
- Remain open for six months with a review in January
New scheme announced
In addition to expansion of the JSS, the government is increasing the cash grants made to businesses in England which have shut in local lockdowns. If you’re a business in England and have been legally required to close, the government will also give you a cash grant. These measures will sit alongside the original Job Support Scheme and the Job Retention Bonus.
- The smallest businesses can now claim £1,300 per month
- Medium sized businesses – with properties with a rateable value of between £15,000 and £51,000 can claim £2,000 per month
- Larger businesses can claim £3,000, all paid in two fortnightly instalments
For more information on the above please see the government announcement here
Further guidance on the scheme will be set out by HMRC in due course
Brexit: Actions for you and your business
As if a global pandemic wasn’t difficult enough for businesses in 2020, December brings with it the looming spectacle of Brexit. The UK is leaving the single market and customs union and the end of the transition period will affect citizens, businesses and travel to and from the EU. This article will discuss the changes and actions for you and your business that may be necessary.
The Job Support Scheme explained
The Job Support Scheme (JSS) is replacing the Coronavirus Job Retention Scheme (CJRS) which ends on 31 October. This new scheme will run for 6 months from 1 November 2020. The intention of the government is to support the income of people in work, allowing employers to keep their employees on fewer hours rather than make them redundant.
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