Inca COVID-19 Update: New Job Support Scheme Available from 1st November
2nd October 2020
Welcome to our latest COVID-19 update.
Chancellor Unveils New Job Support Scheme
The Coronavirus Job Retention Scheme which has helped protect millions of jobs comes to an end on 31st October. Chancellor Rishi Sunak has announced details of its replacement, the Job Support Scheme.
The new scheme is designed to help businesses bring people back to work and protect viable jobs in companies that can support employees doing some work – but face lower demand this coming winter due to COVID-19. Under the scheme, employees will be able to receive a minimum 77% of their normal wages for six months.
Job Support Scheme – key facts
- The scheme will run from 1st November 2020 – 30th April 2021.
- Businesses will continue to pay employees for the time they work, but the cost of hours not worked will be split three ways – between the employer, the employee (through a wage reduction) and the Government (through wage support).
- The Government will pay a third of hours not worked up to a cap of £697.92 a month, with the employer contributing a further third, so that employees will earn a minimum of 77% of their normal wages (where the Government contribution has not been capped).
- To qualify for the scheme, an employee must be on an employer’s PAYE payroll on or before 23rd September 2020.
- Employees must work at least 33% of their usual hours and be paid their normal contracted wage. After 3 months, the Government will consider whether to increase this minimum hours threshold.
- Employees cannot be made redundant or put on notice of redundancy while they are on the scheme.
- The grant does NOT cover Class 1 employer NICs or pension contributions, and these must be paid by the employer.
- Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they are eligible.
How to claim
The grant is available to all employers with a UK bank account and PAYE scheme, and there will be no financial assessment test for small businesses.
The scheme will be open from 1st November 2020 to the end of April 2021. Employers will be able to make a claim online through Gov.uk from December 2020.
Inca Clients: No Fees to Process Claims
As we did with the Coronavirus Job Retention Scheme, we have taken the decision to help our existing clients by not charging any fees for processing claims under the Job Support Scheme.
How have you found business since the end of the national lockdown? We know that many businesses continue to face difficulties. If you need advice on dealing with your business finances, please give us a call, and we’ll do our very best to help you.
The Inca Team
We hope you find this information useful. Please feel free to share it with other business owners in your contact sphere.
We aim to issue regular email updates throughout the Coronavirus crisis. If you do not already receive our emails please do feel free to sign up to our free advice service by following the ‘Subscribe’ link on the right hand side of this page.
If you have specific questions you’d like to ask, please email our new, dedicated email address [email protected]