job support scheme Payroll

The Chancellor, Rishi Sunak, has announced a new Job Support Scheme to protect jobs this winter period.

Summary:

  1. Chancellor Rishi Sunak announces a new Job Support Scheme, starting in November
  2. It replaces the 'furlough scheme' and means the government will pay part of workers' wages who have lost hours
  3. The worker must do at least one-third of normal hours, and the government and employer will pay one-third each of the lost hours
  4. The cut in VAT to 5% for the hospitality and tourism sector will be extended until 31 March
  5. Firms that took government loans during the crisis will have longer to pay them back
  6. Companies that deferred their VAT bill will no longer have to pay a lump sum in March

“I can not save every business, I can not save every job. No Chancellor could.”

Today (September 24), the Chancellor announced that when the Coronavirus Job Retention Scheme (CJRS) ends, on October 31, a new plan will be put in place for six months.

The new Jobs Support Scheme involves the UK government supporting the wages of people in work. This will give employers the option to keep people in work on shorter hours, rather than make them redundant.

According to Sunak: “There has been no harder choice than to end the furlough scheme…. We need to allow the economy to move forward and let people be in viable jobs… As the economy reopens, it is fundamentally wrong to hold people in jobs on furlough.”

From November 1, the government will support companies to pay the wages of employees who are working to avoid redundancy levels increasing.

These are the requirements: employees must be working at least a third of their normal hours and will be paid for that period of working by their employer. For the remaining hours not worked, the government and employer will pay one third of the wages each. Therefore an employee working 33 percent of their usual hours, will receive a total of 77 percent of their normal wage.

Businesses will be able to claim from the new support scheme and claim the Job Retention Bonus in the New Year.

Businesses that have not yet claimed from any of the government support schemes, will also be able to claim from the new scheme.

Learn More  on BBC News-> 

The official GOV.UK information can be found here ->

Payroll Marketing Executive

This article was kindly written by our Marketing Executive, Domenico Del Verme

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