COVID-19 news
Job support scheme amended IN EARLY October, the government announced that the job support scheme (JSS) is being expanded to support businesses across the UK required to close their premises due to coronavirus restrictions. The measures will sit alongside the original JSS and the £1,000 job retention bonus (JRB) which encourages employers to keep staff on payroll. The intention of the changes is to protect jobs and enable businesses to reopen quickly once restrictions are lifted. The scheme is UK-wide and the UK government will work with the devolved administrations to ensure the scheme operates effectively across all four nations. Under the expansion, 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. However, businesses required to close as a result of specific workplace outbreaks by local public health authorities are not eligible for this scheme. Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days. The government will pay two thirds (67%) of each employees’ normal pay, up to a maximum of £2,100 a
month. Details on how ‘normal pay’ is calculated will be set out in guidance to be published. Under the scheme, employers will be required to cover employer National Insurance contributions (NICs) and automatic enrolment pension contributions in full, where applicable, but are not required to make further contribution to wage costs. Employers can top up employee pay if they wish. The scheme will begin on 1 November and will be available for six months, with a review point in January. Payments to businesses will be made in arrears, via a claims service operated by HM Revenue & Customs (HMRC) that will be available from early December. Grants can only be used as reimbursement for wage costs actually incurred. Employers must agree with the relevant individuals the new scheme and any changes to the employment contract and notify the employee in writing. The agreement must be made available to HMRC on request. Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee. In line with the rules for the JSS already announced, all employers with a UK bank account and a UK PAYE (pay
as you earn) scheme registered on or before 23 September 2020 can claim. This means a real time information full payment submission return to HMRC notifying payment to that employee must have been made on or before this date. Claims will be made on a monthly basis online through gov.uk, with the grant paid in arrears. HMRC will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information. HMRC intend to publish the name of employers that have used the scheme, and employees will be able to find out if their employer has claimed for them under the scheme. HMRC will continue to operate a hotline for individuals to make reports of any fraudulent claims. In addition, the government is increasing the cash grants to businesses in England shut in local lockdowns to support with fixed costs. These grants will be linked to rateable values, with up to £3,000 per month payable every two weeks. The devolved administrations in Scotland, Wales and Northern Ireland will benefit from a £1.3 billion increase to their guaranteed funding for 2020/21. Factsheet Job Support Scheme Expansion for Closed Business Premises (https://bit.ly/33OOj7j) provides further information.
Job retention scheme claims EMPLOYERS HAVE until 30 November 2020 to submit claims under the coronavirus job retention scheme for periods ending on or before 31 October 2020. After this date employers will not be able to submit any further claims or add to existing claims.
Protected pension age easement ends
HMRC HAS announced that the protected pension age easement will expire on 1 November 2020 (https://bit.ly/3lHPcoj). The protection was available for members who before 6 April 2006 had a right to take their pension benefits at an earlier age than the current rules allow.
CJRS fraud and errors THE GOVERNMENT has announced that from 28 September 2020 the test and trace support payment scheme, which was piloted from 1 September 2020, would be rolled out across England. People on low incomes who have tested positive for coronavirus or have been told by NHSTT to self-isolate, who cannot work from home and have lost income as a result, will be supported by a test and trace support payment of £500. HMRC has confirmed that payments made under the scheme by local authorities will not be liable to class 1 and class 1A NICs. The Social Security Contributions (Disregarded Payments) (Coronavirus) (England) Regulations 2020 (SI 2020/1065) (https://bit.ly/2FlUztY) will come into force on 22 October 2020 and introduce a class 1 and 1A NICs exemption for payments made under the scheme.
| Professional in Payroll, Pensions and Reward | November 2020 | Issue 65 14
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