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7th October 2020

Job Support Scheme (JSS)

Filed Under: Coronavirus / COVID-19 updates

The chancellor has recently announced a replacement to the furlough scheme which finishes at the end of October. The new scheme will run from 1 November to April 2021 and is called the Job Support Scheme (JSS). The aim of the scheme is to protect viable jobs where the employer is facing lower demand due to the Coronavirus pandemic.

Basic Criteria 

  • The employee will work reduced hours, but at a least one third of their normal hours
  • Employers must have a UK bank account and UK PAYE scheme
  • Neither the employer or employee need to have used the Job Retention Scheme
  • Employees must have been on the payroll submission to HMRC by 23 September 2020
  • Employees must, for the first 3 months, work at least 33% of their usual hours
  • Employees can come on and off the scheme, but each short time working arrangement must be for at least 7 days
  • Employees cannot be made redundant or put on notice of redundancy whilst on the scheme
  • The government’s contribution is capped at £697.92 per month

As the employer, you are paying your employee for the hours they have worked plus one third of the hours they have not worked*. In addition, you will have to pay National Insurance and pension contributions (if applicable) based on the employee’s gross pay through the JSS.

You can claim back the JSS funding via your government gateway. If you wish for us to make the claim on your behalf, please let us know so that we can advise you of our fees for this service.

How the scheme works in practice

Pre Covid-19 an employee worked full time for 35 hours per week, receiving £2,000 gross per month for this work. Using the JSS the employee has agreed with his employer to work 50% of his normal hours (17.5) for the month of November.

Employee receives 

  • Pay for hours worked £1,000 (£2,000 x 50% / 2.5 days per week)
  • JSS of £666.67 which is 2/3rds of the time not worked (£1,000 x 66.6%)
  • TOTAL due to the employee £1,666.67

Employer costs

  • Pay for hours worked of £1,000 (£2,000 x 50% / 2.5 days per week)
  • JSS of £333.33* which is 1/3rd of the time not worked (£1,000 x 33.3%)
  • Employer NI of £128.98 on pay for hours worked plus 2/3rds of time not worked (based on A rate NI)
  • Employer pension of £34.40 on pay for hours worked plus 2/3rds of time not worked (based on 3% of qualifying earnings)
  • TOTAL cost to the employer £1,496.71

*Initially you will have to pay two thirds to your employee and then get one third back from the government after payment has been made to the employee.

HMRC Checks

HMRC will check claims. Payment may be withheld or need to be paid back if a claim is found to be fraudulent. Employers must agree the new short time working arrangements with their staff, making any changes to their employment contract and notify the employee in writing. This agreement must be available to HMRC on request.

Job Retention Bonus

Employers wishing to make use of the Job Support Scheme will still be eligible for the £1,000 Job Retention Bonus, assuming the other necessary conditions are met.

For more information about the JSS or Job Retention Bonus, please contact                    Katie Herbert katie.herbert@thlaccountancy.co.uk or                                            Debbie Sewell debbie.sewell@thlaccountancy.co.uk

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