Businesses closed due to Covid. Extra support announced

Job Support Scheme

The government’s Job Support Scheme (JSS) will be expanded to protect jobs and support businesses that are required to close their doors as a result of coronavirus restrictions.

Additional support announced

On the 9th October, the Chancellor announced a number of additional measures to help businesses that are affected by local lockdowns:-

  • An extension to the new Job Support Scheme for businesses required to close due to COVID restrictions
  • Cash grants for businesses required to close in local lockdowns

When does the Job Support Scheme start?

The job Support Scheme starts on 1 November 2020 and will be available for 6 months. Prior to 1st November, the employer is expected to utilise existing support arrangements such as the Job Retention Scheme which comes to an end on 31st October 2020.

What are the eligibility criteria?

  • Business must be required legally to close as part of local or national restrictions and employees must be off work for a minimum of 7 consecutive days
  • This includes businesses that are required to provide only delivery and collection services from their premises or food and drink outdoors from their premises
  • The employee must have been on the employer RTI submission made to HMRC on or before 23rd September 2020.

What is the extra support?

  • The Government will pay two thirds of each employee’s salary up to a monthly maximum of £2,100
  • No employer salary top-up will be required
  • The employer will be required to cover the cost of the employers NIC and pension contributions
  • The claims should be made in arrears through a HMRC Claims portal, which will be available from early December 2020
  • Affected small businesses with a rateable value of or below £15,000 can now claim a grant of £1,300 per month
  • Affected medium sized businesses with a rateable value between £15,000 and £51,000 can claim a grant of £2,000 per month
  • Affected larger businesses can claim a grant of £3,000 per month
  • The grant will be payable every 2 weeks and will be paid in arrears 

HMRC Checks

  • Grants can only used as reimbursement for wage costs actually incurred
  • Employers must agree the scheme with relevant staff, make any changes to the employment contract by agreement and notify the employee in writing. HMRC can request to see these agreements.
  • HMRC intend to publish the names of employers who use this scheme, so employees will be able to see if their has employer has claimed for them under the scheme.

For further information

Gov.uk website: Job Support Scheme expanded to firms required to close due to Covid restrictions
Gov.uk website: Job Support Scheme Expansion for Closed Business Premises Fact Sheet
Round up of measures announced in Winter Economy Plan

DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.   

 
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Donald Reid Group
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