The UK’s new Job Support Scheme (JSS) will commence 1 November 2020, and last for a six-month period, or when the present furlough scheme ends. What does this mean to you as a foreign business owner and how does it affect your employees? The experienced tax specialists at British American Tax are here to answer these questions and more as we take a look at the new Job Support Scheme (JSS). Let’s get started:
Who Is Eligible For The Job Support Scheme?
For employers to be considered eligible for the Job Support Scheme (JSS), they must meet the following criteria:
- Employers must have a UK bank account and a UK PAYE scheme.
- Employers or employees must not have used the furlough scheme.
However, we should mention that large businesses must be able to show that their turnover is lower now than before experiencing any COVID related disruptions. What is considered a large business? HMRC defines a large business as having more than 250 employees (this is reduced to 100 employees if company is foreign owned); or annualised turnover exceeding £30m. While there is no financial assessment test for smaller businesses (SMEs), large businesses will not be able to make any capital distributions such as dividends or share buy backs if they are using the JSS.
Eligibility Conditions For Employees
There are some rather specific eligibility conditions for employees including that employees receiving the Job Support Scheme must be on an employer’s PAYE payroll on or before 23 September 2020. Other conditions include:
The employee must work at least 33% of their usual hours for the first three months of the scheme. The Government will consider whether to increase this minimum hour’s threshold after 3 months.
Each short-time working arrangement must cover a minimum period of seven days which means that, although employees will be able to cycle on and off the scheme, they must ensure that they work at least 7 days within the eligibility period.
What Does The Grant Cover?
The UK’s new Job Support Scheme (JSS) provides a monthly contribution will be capped at £697.92 a month. And it will pay a third of the usual hourly wage for that employee with the employer paying another third.
If all of this sounds confusing, contacting an expert tax advisor can help your business remain compliant and avoid any potential fines from HMRC.
Contact British American Tax
To learn more about the UK’s new Job Support Scheme (JSS), contact British American Tax today and consult with an expert tax advisor who can answer any questions you might have about taking a pro-active approach to your tax planning.
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