The Chancellor has announced the Job Support Scheme Expansion for Closed Business Premises which we summarise below.
Broadly speaking, this scheme is restricted to those who are expected to be ordered to close from this week onwards. If their business survives and are allowed to reopen, they will then be able to take advantage of the JSS as announced on 24 September which has a broader landscape. Neither of these schemes affects their ability to claim JRB, although to be able to claim JRB they must have been eligible to claim under the furlough and did in fact claim under the furlough scheme.
Further HMRC will publish the names of companies who claim under this scheme so that their employees can see whether their employers have passed on the costs.
JSS Expansion Summary
- To provide temporary support for businesses whose premises have been legally required to close as a direct result of Covid-19 restrictions.
- Available to employers from 1 November 2020 for 6 months (with a review taking place in January 2021).
- All employers with a UK bank account and a UK PAYE scheme registered on or before 23 September 2020 are eligible.
- It will cover businesses that are legally required to close their premises as a result of restrictions set by one or more of the four governments in the UK (this includes those restricted to delivery or collection-only service).
- The grant for any eligible employee will cover "two-thirds of their normal pay up to a limit of £2100 per month".
- Employers do not have to top up the pay but can do so if they wish. They must pay for Class 1 employer NICs and pension contributions.
- Employers whose premises are closed can claim and when they re-open employers can claim under the JSS scheme announced on 24 September 2020.
- This implies that this cannot be used at the same time as the JSS but employers will be able to take advantage of the JSS once their businesses are allowed to re-open.
- Employers cannot be made redundant or put on notice during whilst the employer is claiming under the scheme
- Employers must agree the new scheme with the relevant staff, make any changes to the employment contract by agreement, and notify the employee in writing.
- The agreement must be made available to HMRC on request.
How will it work, and with other schemes?
- Employers can make a claim on a monthly basis in arrears from December 2020 and claims must not overlap.
- Grants can only be used to reimburse wage costs actually incurred.
- Claiming under this scheme does not prevent the employer from claiming JRB.
- JSS grants can be used to pay an employee's wages and help meet the JRB minimum income threshold.
- Detailed guidance on JSS and this scheme "in the coming weeks".
- We may get a single detailed guidance on both schemes.