Chancellor expands Job Support Scheme and grants to businesses facing new COVID-19 restrictions
The Chancellor has announced that the Government will expand the new Job Support Scheme (JSS) to assist jobs and businesses required to close their doors as a result of tougher Coronavirus restrictions.
The announcement was made ahead of new plans to introduce a tier-based system for lockdowns across the country, which could force some businesses to close their doors once again.
The expanded Job Support Scheme
Under the expanded JSS, firms whose premises are legally required to shut for some period over winter as part of local or national restrictions will receive grants to pay the wages of staff who cannot work.
These grants will cover around two-thirds of each employees’ salary (67 per cent), up to a maximum of £2,100 a month.
Employers will not be required to contribute towards wages and will only be asked to pay National Insurance contributions (NICs) and auto-enrolment pension contributions.
The Government has estimated that around half of potential claims are not likely to incur employer NICs or pension contributions at all.
Businesses can only claim a grant where they are subject to a restriction that prevents them from opening and employees must not work for a minimum of seven consecutive days to be eligible.
The new scheme will open on 1 November alongside the other JSS measures announced last month in the Winter Economy Plan. It will be available for up to six months for businesses affected, with a review point in January.
All grant payments will be made in arrears through a dedicated HM Revenue & Customs service, which will be available from early December.
As well as expanding the JSS, the Government will also increase the value of cash grants offered to businesses in England forced into lockdown to support them with fixed costs.
Linked to the rateable value of business premises, the increased grants will see payments of up to £3,000 per month, payable every two weeks, instead of up to £1,500 every three weeks.
Under this reformed grant scheme:
- Small businesses with a rateable value of or below £15,000 can now claim £1,300 per month;
- medium-sized businesses with a rateable value between £15,000 and £51,000 can claim £2,000 per month; and
- larger businesses can claim £3,000.
The Government is also extending this scheme to include businesses that are forced to close on a national basis, such as nightclubs.
Here to help
Much of these new measures will rely on the Government’s new tiered system for restrictions and may vary over time from one region to the next.
With this being the case, it is important to consider how this affects your business and seek advice at the earliest opportunity. To find out how we can assist you, please contact us.
- The fifth round of the Self-Employment Income Support Scheme (SEISS) is now open
- Government updates self-isolation rules with limited exemptions for 16 sectors
- Freedom Day – What does it mean for businesses?
- Time to prepare for Corporation Tax changes
- Making Tax Digital for Income Tax – Get ready now!
- Points-based system for HMRC late payment penalties
- Take account of your year-end tax liabilities
- Director’s ban a warning to others to keep proper company records
- Don’t miss the deadline for renewing tax credits
- A helping hand with the cost of children’s summer activities
- CJRS – Upcoming changes to payments and the furlough scheme
- Preparing for the end of the Stamp Duty Holiday
- Government extends ban on commercial evictions until March 2022
- Fifth round of the Self-Employment Income Support Scheme to launch in late July
- Businesses can still access the Recovery Loan Scheme
- Make sure to include SEISS grants on your next tax returns
- Beware of the HMRC scammers, but ignoring calls can be costly
- Carry back scheme brings welcome relief for business
- New recommendations in sweeping CGT review
- Tax saving strategies for landlords
- Bank of England and CBI expect the biggest rise in economy for decades
- Financial Reporting: GRC, Governance Risk and Compliance Tools
- HMRC unveils penalty regime for VAT deferral scheme
- COVID forces businesses to change direction
- Workers can continue to claim home working tax allowance in the new tax year
- Reimbursed expenses – What you need to know
- HMRC to tackle SEISS abuse with new penalty regime
- New Debt Respite Scheme launched
- National Insurance relief launches for employers that hire veterans
- Parents missing out on tax-free childcare bonus of up to £500
- Applications for SME Brexit Support Fund underway
- Thousands of cases of COVID-related fraud and cyber-crime are being investigated
- Majority of SME owners have loaned personal money to their business during the pandemic
- Coronavirus insolvency measures extended until the end of June
- Inheritance tax reporting to be simplified
- HMRC contacts self-employed individuals who could be eligible for fourth SEISS grant
- Furlough scheme guidance updated
- New claims needed to continue receiving working from home tax relief
- The Best Cloud Accounting Software For Pubs
- Coronavirus Restart Grant
- Student loan thresholds to rise from 6 April 2021
- HMRC updates tax rules and calculations on ultra-low emission vehicles
- Almost two-fifths of small businesses are looking to trade overseas
- National Living Wage and National Minimum Wage rates to increase from 1 April
- Business rates review report delayed
- Vaccine rollout prompts SME optimism about prospects for 2021
- Budget 2021
- Self-Assessment late payment penalties relaxed but interest still accrues
- Business insurance rates are on the rise
- The advantages of electric vehicle salary sacrifice schemes
- Consultations on future of Companies House could see filing deadlines slashed
- Voluntary and compulsory strike-off processes paused in response to national lockdown
- Don’t forget to claim home working tax relief
- Large and medium-sized businesses need to be ready for IR35
- The VAT Reverse Charge for the Construction Industry Scheme – Are you ready?
- Basic rate taxpayers could face ‘high income’ child benefit charge
- The VAT Deferral New Payment Scheme
- COVID-19 Bounce Back Loan repayment period extended
- Calculating Coronavirus Job Retention Scheme claims for annually paid directors
- HM Revenue & Customs waives late filing penalties for Self-Assessment taxpayers who file by 28 February – but payment deadline remains
- Requests for exemption from publication of furlough claims must be submitted by Monday 25 January
- Only a few days are left to submit applications for the third SEISS grant
- What could Budget 2021 have in store?
- HM Revenue & Customs increases the threshold for Self-Assessment online payment plan service to £30,000
- Independent commission argues against annual wealth tax but advocates a one-off charge
- Could the Government be about to launch a new permanent state-backed small business loan scheme?
- HMRC issues new warning over lockdown fraudsters
- FSB proposes move to turn Covid emergency debt into shared ownership schemes
- VAT – Post-Brexit arrangements
- Insurance industry to pay out on COVID-19 business interruption claims
- Are you making full use of the Government’s COVID-19 financial support package?
- Government extends agricultural visa scheme to fill jobs left by EU workers
- Brexit: UK Trader Scheme to support movement of goods between Britain and Northern Ireland
- Coronavirus furlough and loan schemes further extended
- Brexit trade deal negotiations continue as businesses warned to prepare for a ‘no deal’ scenario
- VAT under the Northern Ireland Protocol
- Northern Ireland customs duty arrangements confirmed
- Government launches new export finance guarantee scheme
- How can your business prepare for customs and VAT after Brexit?
- UK launches points-based post-Brexit immigration system
- Business Secretary writes to professional services sector ahead of end of Brexit transition period
- HMRC updates Statutory Residence Test due to COVID-19
- Scammers are targeting Self-Assessment taxpayers, says HMRC
- Eat Out to Help Out compliance checks underway
- Businesses face legal action over unpaid business rates
- HMRC publishes consultation on MTD for Corporation Tax
- HM Revenue & Customs issues Capital Gains Tax reminder
- Virtual Christmas parties eligible for £150 annual function exemption
- Grandparents set to increase gifting following pandemic and families set to inherit more than expected
- Access to European Union VAT refund system to end on 31 March 2021, HMRC confirms
- Brexit: How to claim grant funding to help cover the costs of completing new customs declarations
- Companies House to scrap paper reminder letters
- Third round of Self-Employment Income Support Scheme (SEISS) opens on Monday with tighter eligibility criteria
- Important deadlines approach for the furlough scheme
- Spending Review highlights long-term economic impact of Coronavirus pandemic
- The New COVID-19 Tier System
- VAT after the Brexit transition
- IFS predicts tax rises of more than £40 billion a year by the middle of the decade
- More than 50,000 people claim working from home tax relief through HM Revenue & Customs online portal
- HMRC called on to simplify the administration of tax reliefs