Treasury Direction made in relation to the JRB 8 October 2020
On 2 October 2020, Chancellor, Rishi Sunak, made a Treasury Direction under Sections 71 and 76 of the Coronavirus Act. This was in order to establish the legal framework for the Job Retention Bonus (JRB). The Direction confirms that HMRC will be responsible for the payment and management of amounts that are given to businesses under the JRB, much as it was for the Coronavirus Job Retention Scheme (CJRS). The Direction confirms that the JRB’s purpose is to both enhance and consolidate the purpose of the CJRS. It also clarifies that any claims made under the CJRS can not be made after 30 November 2020, a fact which is clearly outlined within the various HMRC guidance pages on the topic. The Direction provides information on qualifying employers and employees, and also confirms that the claim period will run from 15 February 2021 – 31 March 2021. This is the timeframe in which employers will be able to submit claims under the JRB. The Direction reiterates the fact that the payment is for a one-off amount of £1,000 per eligible employee.
Back to Contents
The protected pension age easement will expire on 1 November 2020 8 October 2020
Within HMRC’s most recently published Pension Schemes Newsletter, initially it was advised that there was no official end date for the protected pension age easement, which was extended until 1 November 2020. In an update to the newsletter, it has now been confirmed that no extension will be put in place, and the easement will expire on 1 November 2020. The easement was implemented in response to the outbreak of coronavirus, and meant that anyone who had retired, but returned to work due to COVID-19, would retain their protected pension age, even in scenarios where they had been re-employed in the same job. The easement also meant that individuals in this situation would not be subject to an unauthorised payment charge.
Back to Contents
Job Support Scheme expanded to protect jobs and support businesses forced to close 9 October 2020
Chancellor of the Exchequer, Rishi Sunak has confirmed that the Government’s Job Support Scheme (JSS) will be extended in order to protect jobs and to support businesses that are legally required to close down due to coronavirus restrictions. The Government will pay two thirds of employees’ salaries in order to protect jobs over what is expected to be a particularly harsh Winter. Local or national lockdowns could see certain businesses having to shut down, which is why the announcement has been made. It is hoped that this will protect jobs, and additionally, that it will allow businesses to reopen quickly once lockdown restrictions are eased. Eligible businesses will receive grants of two thirds of each employees’ salary, or 67%, up to a maximum cap of £2,100 per month. Employers will be asked to pay the associated on-costs, so the employer’s National Insurance (NI) contributions, and pension contributions, but it is predicted that approximately half of all claims will not incur these costs, so employers will not be required to make any contribution at all in these scenarios.
Businesses are only able to claim the grant whilst subject to the restrictions, and employees have to be off work (on furlough) for a minimum of seven consecutive days.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 149 of 590
Made with FlippingBook - Online magazine maker