The government announced on 09 October 2020 that they would be extending the Job Support Scheme to provide support for businesses whose premises are legally required to close as a direct result of Coronavirus restrictions. The Scheme is available for six months from 01 November 2020 and will be reviewed in January 2021.
The scheme will cover business who are legally required to close their premises due to Coronavirus restrictions imposed by one or more of the four UK governments.
Employers with a UK bank account and UK PAYE scheme registered on or before 23 September 2020 can claim.
Employers will only be able to use the scheme for employees who cannot work for that employer for a minimum of 7 consecutive days.
Employers required by the local public health authorities to close as a result of specific workplace Coronavirus outbreaks are not eligible to claim.
Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme to be eligible.
Employees can not be made redundant or be put on notice of redundancy during the period in which their employer is claiming the grant in respect of that employee.
The employer must use the whole of the amount they are granted under the scheme to cover their employee’s wages.
The scheme will pay a grant to the employer calculated on the number of eligible employees who have been instructed to and cease work at the premises.
Claims must not overlap and must be made monthly in arrears. These payments will be taxable and employers will have to cover National Insurance and pension contributions in full, however they are not required to top up the wage payments.
Employers will be able to make a claim on a monthly basis online through gov.uk from December 2020. Further guidance is expected.
Note that HMRC are intending to publish the name of employers who have used the scheme, and will operate a hotline for individuals to make reports of any fraudulent claims they are made aware of.
Employers who are not required to close their premises but are facing a decreased demand in work may be eligible for the Job Support Scheme: [link to our article when on website here]