Pay Less Tax – Spring 2024 Edition
Job Support Scheme
The Job Support Scheme, both Open and Closed, will be open from 1 November 2020 and run for 6 months, until 30 April 2021. The government will review the terms of the scheme in January.
Employers will be able to claim in arrears from 8 December 2020, with payments made after the claim has been approved. Neither the employer nor the employee needs to have benefitted from the Coronavirus Job Retention Scheme to be eligible for the Job Support Scheme.
Job Support Scheme – Employers facing decreased demand (JSS Open)
Updates have been made to the Job Support Scheme where employers are facing decreased demand regardless of what tier they are in.
Employees will now only need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked.
Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked – this will be made up of contributions from the employer and the government
For the hours not worked:
- the employer is required to pay 5% of the reference salary up to a maximum of £125 per month, with the discretion to pay more than this if they wish.
- the government will pay 61.67% of the reference salary up to a maximum of £1,541.75 per month.
This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.
To access this scheme the employee:
- must have been on the payroll since 23rd September; and
- cannot be made redundant or put on notice until after the JSS grant stops being claimed.
The scheme is flexible in that an employee can move on and off it or work different hours, but each working arrangement must cover at least seven days.
Job Support Scheme – Employers who are legally required to close their premises (JSS Closed)
As in previous updates, where employers have been legally required to close their premises as a direct result of coronavirus restrictions, each employee who cannot work will receive two-thirds of their normal pay. This will be paid by their employer but be fully funded by the government, to a maximum of £2,083.33 per month. An employer has the discretion to pay more than this if they wish.
Employees may also be entitled to additional financial support, including Universal Credit.
Grants
Businesses in Tier 3 (Very High alert) will now qualify for extra support, whether they remain open or closed, and can apply for a grant up to £3000, so long as they have been affected by the restrictions.
Businesses subject to Tier 2 restrictions (High alert) in the hospitality, accommodation, and leisure sectors that are not legally required to close but are severely impacted by the restrictions on hospitality will be eligible to apply for a grant up to £2100 per month.
These grants will be available retrospectively for areas that have already been subject to restrictions.
» Click here for more details (pdf)
Self Employed Income Support Scheme (SEISS)
Yesterday it was announced that the upcoming SEISS grant is going to be increased to cover 40% of average monthly trading profits. The grant will cover three months from 1 November 2020 until 31 January 2021 and be paid out in a single instalment covering 3 month’s worth of profits and capped at £3750 in total.
The second grant will cover three months from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.
All of the above grants are taxable income and also subject to National Insurance contributions (where applicable).
Related posts
