October 23rd, 2020
In response to the challenges faced by businesses during the current outbreak of coronavirus (COVID-19), the Chancellor of the Exchequer of the UK Rishi Sunak announced on 22 October 2020 additional governmental support to help employers retain their employees through the Job Support Scheme (JSS) during this winter from 2020 to 2021.
The government has implemented new rules by creating a three-tier system with increasing restrictions depending on the designated alert level of the local area. Subject to the eligibility criteria (see below), the JSS is available to small businesses and larger businesses across the UK that can show an impact on revenues. It is specifically aimed at addressing the gap in support for businesses in tier two restrictions such as London and Birmingham.
Under the JSS, employers of eligible businesses will have to pay for a minimum of 20% of usual hours worked, and 5% of hours not worked. The government will now fund 62% of the wages for hours not worked. In contrast to the measures announced at the launch of the Winter Economic Plan in September 2020, the JSS more than doubles the maximum payment of the government to £1,541.75 a month. The taxpayers will now go from funding up to 22% of wages to just up to under half of wages.
For more information on the eligibility criteria for the JSS and further information, please refer to the policy paper published by the HM Revenue & Customs on 22 October 2020 at https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme.
Svetlova LLP has a wealth of experience advising start-ups and small businesses. Should you require any legal advice in relation to the JSS or your businesses, please contact us on +44 (0)207 129 129 6 and by email at email@example.com.