Job Support Scheme - Now Cancelled

Following the Chancellors November announcement to extend the furlough scheme the Job Support Scheme has been withdrawn until further notice. Our original guidance can be found below which is now out of date.

On 24th September, the Chancellor announced the creation of the Job Support Scheme which will be available from 1st November 2020.  Full details are yet to be announced but some key criteria have been released and we offer a link to the most recent HMRC publication here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/921389/Job_Support_Scheme_Factsheet.pdf

Our concern is that whilst domestic employers have not been expressly excluded from this new scheme the wording is quite focused around…

“viable jobs in businesses who are facing lower demand over the winter months”

 rather than employers in general. On that basis we will hope that domestic employers are included but clients should be prepared for exclusion. 

It is far from the most simple of schemes but NannyPaye will be ready to help you should you be able and wish to take advantage of the Job Support Scheme.

Key facts:

  • Starts at point CJRS scheme ends and if eligible is for employers who have or have not claimed CJRS grant before.
  • Your Nanny must work at least 33% of normal hours.
  • Nanny will then be paid
    • Normal pay for worked hours funded by the employer.
    • For the unworked hours:
      • The Government will pay 33% (capped at £697.92 per month). They will not fund the Employer Pension or NIC.
      • The Employer pays 33%. (we are not clear if this is capped)
      • The Employee loses 33%.Overall your Nanny will be paid 77% of their wages (assuming it does not exceed the cap).
    • There is an expectation that employer will not be allowed to top up the pay to 100% even at their own expense.
    • This can be paid in conjunction with the £1000.00 Job Retention Bonus.
    • This can be paid to any eligible employer who had an employee on payroll on 23rd September. Importantly this will mean the employer must have been registered with HMRC and RTI submitted meaning many clients who joined close to that date will be excluded.
    • The scheme is flexible (similar to Part Time Furlough) with an expected one week minimum claim period.
    • 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.
    • Employers must agree the new short-time working arrangements with their staff, make any changes to the employment contract by agreement, and notify the employee in writing. This agreement must be made available to HMRC on request. We will provide template agreements as we know more about the scheme.
    • Employers will be able to claim from December 2020 and must have PAYE Online set up. New clients should refer to Step 1 and Step 2 of our guidance on claiming the CJRS grant to ensure this is in place for your first claim.

We will endeavour to update clients further as more details become available.

At this point we recommend parents consider if the scheme is viable for them and start to open a PAYE Online account if one is not already open in case of eligibility.