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Job Support Scheme replacing Furlough Scheme
Eligibility Criteria and explanations

Job Support Scheme

The much-talked-about Job Support Scheme or JSS replaces the previous Fourlough Scheme CJRS as it aims to mitigate the effect of the pandemic on UK businesses and households.

Please note that CJRS scheme closes on 31 October and you will need to make any final claims on or before 30 November.  You will not be able to submit or add to any claims after 30 November.

On October 23, exchequer chancellor Rishi Sunak announced additional changes in the JSS initiative which we have tried to explain below.
 
The 1st phase of the Job Support Scheme will commence from 1st November this year and expire on 30th April next year.

Chancellor added that officials-concerned will review the JSS in January next year.
At the outset, JSS will have two variations: JSS Closed and JSS Open.

What is JSS Open?

JSS Open grant will be available for those employers and businesses who will continue to run their operations safely but experience a reduced demand in their services or products in the wake of the resurgence of the Covid-19.
 
Through the JSS Open grant, employers will not downsize or terminate staff. Rather, employees will work for reduced hours
[minimum 20% of their usual hours to qualify for the grant]
w
hereas employers will pay employees for the hours worked.

For the hours not worked, employees will be reimbursed as much as 66.7% of their normal wages or salaries. The amount of reimbursed salaries for the hours not worked will be shared by the government and the employer.
 
Under JSS Open, the employer will have to pay at least 5% of the reimbursed amount of the salary for the hours not worked, with a maximum limit of £125 each month.

However, the employer has the discretion to contribute more amount than the minimum threshold if they wish to do so.
 
It means that the UK government will contribute as much as 61.67% of the reimbursed amount under JSS Open, with a maximum threshold of £1,541.75.

What is JSS Open?

JSS Open grant will be available for those employers and businesses who will continue to run their operations safely but experience a reduced demand in their services or products in the wake of the resurgence of the Covid-19.
 
Through the JSS Open grant, employers will not downsize or terminate staff. Rather, employees will work for reduced hours
[minimum 20% of their usual hours to qualify for the grant]
w
hereas employers will pay employees for the hours worked.

For the hours not worked, employees will be reimbursed as much as 66.7% of their normal wages or salaries. The amount of reimbursed salaries for the hours not worked will be shared by the government and the employer.
 
Under JSS Open, the employer will have to pay at least 5% of the reimbursed amount of the salary for the hours not worked, with a maximum limit of £125 each month.

However, the employer has the discretion to contribute more amount than the minimum threshold if they wish to do so.
 
It means that the UK government will contribute as much as 61.67% of the reimbursed amount under JSS Open, with a maximum threshold of £1,541.75.

However, the employer will cover Pension Contributions and National Insurance.

What is JSS Closed?

Under JSS Closed initiative or variation, those employers who will be asked to close their working places or premises entirely during the Covid-19 lockdown can apply for the grant.
 
Under JSS Closed, an employee will be given 2/3rd of his/her usual wage or salary. The maximum threshold of the grant that an employee will receive under JSS Closed is £2,083.33 per month.
The UK government will cover all the amount under JSS Closed while it will be paid to employees by their employers.

Just like JSS Open, the employer has the discretion to pay an additional amount to the employees if s/he wants to do so.
 
However, the employer will cover Pension Contributions and National Insurance.

When will this scheme start?

The first claim under JSS can be made by as early as the 8th of December, for salary periods concluding in November and for salaries paid in the same month.

How does an employee will know?
As far as employees are concerned, they can check whether or not their employer has made a claim on their behalf for help under the JSS initiative through an online personal tax account.

When JSS will begin?
 
The overall period for the first phase of JSS is six months. It will begin on 1st November 2020  this year and expires on 30 April next year. 

Also, the government will review its terms in January 2021.

Employer Eligibility? 

Following employers are eligible to apply for financial help under the Job Support Scheme:

  1. Those employers who have registered themselves for Pay-As-You-Earn online,
  2. And they own bank account in the mainland UK, Isle of Man, or Channel Island.
Further details will be published by the end of October 2020.

There are certain other criteria that will apply separately on JSS Open and JSS Closed grants especially for employers with more than 250 employees.

Employee Eligibility? 

Eligible employers will be able to claim the Job Support Scheme grant for employees who were on their PAYE payroll between 6 April 2019 and 11:59 pm on 23 September 2020.

This means an RTI Full Payment Submission notifying payment in respect of that employee must have been made to HMRC at some point from 6 April 2019 up to 11:59 pm 23 September 2020.

Employers can only claim for employees that were in their employment on 23 September 2020.

If employees ceased employment after 23 of September 2020 and were subsequently rehired, then employers can claim for them.

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