It has been long awaited but finally the son of the Coronavirus Job Retention Scheme has been unveiled. Aptly called the Job Support Scheme, JSS. This will kick in at the end of October.
In this blog you will find the key principles of this new scheme and how they can impact your business:
So what is the Job Support Scheme (JSS)?
It is made up of three main principles:
- The scheme will support viable jobs to make sure that employees must work 1/3 of their normal hours, and accordingly be paid for that work normally by their employer.
- It will target to support businesses that need it the most. All small and medium sized businesses are eligible, but larger businesses with their turnover fallen through the crisis will also be eligible.
- The scheme will be open to employers across the UK, even if they previously had not been under the furlough scheme.
This all sounds rather promising but there are still unanswered questions.
Here are a few things that as a business owner, you need to consider:
It only applies to salaries and wages that are paid from the 1st November 2020 to the 30th April 2021, unless the Chancellor extends the scheme.
The Job Support Scheme is not just for employees who were furloughed for all, or some, of the period between March and October 2020. This scheme is available for any employees who have recently joined your payroll.
The Chancellor has expressed a wish that only employees of small and medium-sized businesses who have a UK bank account will be included under the Job Support Scheme without further conditions being applied. Larger employers must prove their turnover has been reduced due to COVID-19 before HMRC will allow them to participate in the Job Support Scheme. This is going to be quite a stressful and somewhat emotional time for these larger businesses that have to prove and showcase their darker days within this pandemic.
This doesn’t mean it will be a bed of roses for the small to medium businesses either. With the extra administration and compliance of this new scheme it is extremely important to ensure that you have the backing of your accountant.
We believe this is where a hands-on accountancy firms like ourselves come into play. With rumours that the JSS payments may be in arrears it is imperative to have your accounts and cash flow in the best position it could be in.
We are keeping our eyes peeled and our ears to the ground for any new information on this scheme. If you are nervous or need a helping hand in taking this all on then please don’t be shy, give us a call on 01284 770427 or come in for a socially distanced cup of tea.