Job Support Scheme: Closed Business Premises

Chancellor Rishi Sunak has announced an extension to the Job Support Scheme (JSS) which is due to begin on the 1 November 2020.

The extension, which we have termed JSS2, applies to all businesses who are legally required to close over the winter months owing to local or national restrictions.

JSS2 will see an increase in the Government’s contribution to employee wage costs from a maximum of 22% under JSS to 67% for any period of mandatory shutdown up to a limit of £2,100 per month.

Under JSS2, businesses will not be required to contribute towards wages. They will however be responsible for NICS and pension contributions.

In line with the JSS, claims must be made on a monthly basis in arrears via a HMRC portal, which is expected to open in December.

To qualify, businesses will only be able to claim whilst they are subject to restrictions. Employees must be off work for a minimum of 7 consecutive calendar days and in a similar move to the furlough scheme, must cease work completely during any claim period.

JSS2 will be available for 6 months but it is anticipated that it will be subject to a review point in January.

If you are concerned about the effect that these changes will have on your business, please contact Emma Spandrzyk in our employment team on 01530 564498 or via email at e.spandrzyk@timms-law.com.

Emma Spandrzyk
15 October 2020