Extension of Job Support Scheme

Howes Percival LLP

13th October 2020

On 9 October 2020, Rishi Sunak announced an extended Job Support Scheme (“JSS”) for businesses, which are required to close due to local or national restrictions. The assistance will be in the form of grants to help pay the wages of staff who cannot work due to restrictions.

If a business can open, then viable jobs will be supported via the normal JSS announced in September, further information on this scheme is available here.

The extension of JSS applies to businesses in any region or nation of the UK that are legally required to shut over the winter period. That includes those businesses that are required to provide delivery and collection services only from their premises, or only serve food and drink outdoors from their premises.

The key information for the extended JSS is as follows:

  • Employees must be employed and an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 23 September;
  • Employees must have been furloughed for a minimum of 7 consecutive days;
  • Employees will receive 2/3rd of their normal salary (67%) up to £2,100 a month, from their employer;
  • The government will cover the cost of each employees’ furloughed wages (only for businesses that are required to close);
  • The employer will only need to cover the cost of employer national insurance and pension contributions;
  • Employees of businesses that have been legally closed in the period before 1 November 2020 are eligible for the CJRS (furlough scheme);
  • The extended JSS will open on 1 November 2020 for 6 months and a review will take place in January 2021; and
  • Payments will be made in arrears, via a HMRC claims service, that will be available in early December 2020.
     

Alex Payton comments:

“The extension of the JSS is welcome news for business impacted by further restrictions which are to be imposed by the government over the winter months. We await further detail about the extended scheme, but should you wish to discuss this further do contact a member of the Howes Percival Employment Team.”

The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.

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