The enhanced Job Support Scheme, which we outlined on 15 October, has been rebranded JSS Closed, but the details have changed significantly since then.
This scheme only applies to businesses which are legally required to close their premises to customers due to coronavirus regulations, such as under tier 3 restrictions in England, or the similarly regulations in Wales, Scotland or Northern Ireland.
However, the business can switch to collection or delivery mode only, in which case it will have to keep some staff partially employed. The wages of those employees can be subsidised using the JSS Open, as the employer can claim under both job support schemes concurrently, but not for the same employee.
The JSS Closed grant will cover two thirds of the normal pay of furloughed employees, who cannot work at all, up to a maximum of £2,083.33 per month. The employee will not be paid the remaining one third of their normal hours, unless the employer tops up the furlough pay. However, the employer must pay all the employer’s class 1 NIC and the minimum employer’s pension contributions to the workplace pension scheme, in respect of the furloughed pay the employee receives.
Claims for grants under JSS Closed and JSS Open cannot be made until after the employees’ pay for the period has been reported under RTI. The portal to claim the grants will open on 8 December 2020.
Written by the Tax Advice Network