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Are you going to use the new Job Support Scheme? Only 5 days to go!

HMRC has now published a policy paper setting out further details on the Job Support Scheme.

There will be two schemes. One known as JSS Open (for businesses that are operating but facing decreased demand) and JSS Closed (for those businesses who have been required to close under Government restrictions).

Under the JSS Open scheme, an employee will need to work at least 20% of their normal hours.  They will receive normal pay for the hours they work, and 2/3 of pay for the hours they do not work.  The Government will pay 61.67% of the top up (up to a maximum of £1,541.75pm) and employers will pay 5%, plus National Insurance and pension contributions of the whole amount the employee is paid. This new split means that more of the contribution is coming from the Government. It is at the employer’s discretion whether they wish to pay their employees more.

There are no changes to the JSS Closed scheme. The Government will fund 2/3 of employee’s normal wages (up to a maximum of £2,083.33pm) if your business has had to close due to lockdown restrictions. The employer will have to pay the National Insurance and pension contributions on the funded amount.

For both schemes, there is a cap of £3,125 per month and the changes must be agreed in writing by the employee.

You can read the policy paper in full here. A Treasury Direction is expected shortly, which will be the legislation underpinning the Scheme and we will let our readers know once this is published.

If you have any queries, please contact our employment team on 01228 552600 or 01524 548494.

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