As An Employer What Support is Available To Me?

The Government have made announcements about more changes to the support available to you the employer. Below is the updated information for you in simple language!

Job Support Scheme Open

If you are a business and you are in a position where you have bought staff back, but due to the recent restrictions need to reduce their hours, then the government will help you as long as you meet the following criteria:

  • You have less than 250 employees
  • You can give your employee at least 20% of their normal working hours
  • Your employee has been on your payroll on or before 23rd September 2020

You will continue to pay your employee as normal for the hours they have worked. For the hours not worked, you and the government will each pay a portion of their normal wages up to a maximum of £1541.75 per month.

For example:

Your employee normally works 20 hours and earns £10 per hour and they are now only working 10 hours

You will pay £100 (hours worked) +£5 (5% of lost hours)

Government will pay £61.67  (62% of lost hours)

So your employee will only end up being £33.33 short

All National Insurance and Pension contributions will still need to be paid by you..

This support scheme is available from 1st November 2020 and run for 6 months with a review in January 2021.

Job Support Scheme Closed – If your Business is legally required to close as a direct result of coronavirus restrictions

Should your business be instructed to shut due to further restrictions, you could receive a contribution to help pay the wages of your employees. You can also claim if you have been instructed to provide delivery and collection only services from your premises for the staff which cannot work.

The Government will pay 67% of employees’ usual wages up to a maximum of £2,083 per month. You will not be required to contribute towards wages but will need to cover National insurance and pension contributions.

This support is available whether you are in local restrictions or national lockdown.

This is available for 6 months from 1st November 2020. Payment of grants will be in arrears from early December 2020.

Job Retention Bonus

As an employer, if you have furloughed any employees and they are still working for you on 31st January 2021 then you may be eligible for the Job Retention Bonus.

This is a one off payment of £1000 for each employee that you have furloughed and kept in continuous employment.

To be eligible, employees must earn at least £1,560 between 6‌‌‌‌‌‌ November 2020 and 5‌‌‌ February 2021 and have received earnings in the November, December and January tax months.

Employees must also not be serving a contractual or statutory notice period for you on 31‌‌‌ January 2021.

You will be able to claim the bonus from 15‌‌‌ February 2021 until 31‌‌‌ March 2021. You will need to have submitted PAYE information for the period up to 5‌‌‌ February 2021. Further guidance is due by the end of January 2021.

You can still claim the Job Retention Bonus if you make a claim for the same employee through the Job Support Scheme, as long as you meet the eligibility criteria for both.

Coronavirus Job Retention Scheme – changes from 1‌‌‌ October

From 1‌‌‌ October 2020, the amount HMRC contribution reduced to 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.

You will continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. The extra 20% will be funded by you.

You will also continue to pay your furloughed employees’ National Insurance and pension contributions.

The scheme closes on 31‌‌‌‌‌‌ October2020. Final claims need to be made on or before 30‌‌‌ November 2020. You will not be able to submit or add to any claims after 30‌‌‌ November 2020.

VAT Deferral New Payment Scheme

If you deferred VAT payments that were due between 20‌‌‌‌‌‌ March 2020 and 30‌‌‌ June 2020, then these payments need to be made to HMRC by 3‌‌‌1‌‌‌ March 2021.

You will now have the option to spread your payment over the 2021/2022 financial year (6 April 2021 to 5th April 2022). You will however need to opt in to the scheme. The Government have said that the opt-in process should be up and running in early 2021.

So for now, this is the current information. Rest assured that we are trying to keep up, and trying to keep you in the know. Keep your eye out for our next Blogs. If you would like to speak to somebody about any of the above then please feel free to contact us.