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Guidance explained for JSS Closed and JSS Open for businesses affected by tiered restrictions
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New Job Support Schemes: Get the details right

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HMRC finally released guidance on the operation of the twin job support schemes that both start on 1 November 2020. Rebecca Cave takes you through the essential details.

23rd Oct 2020
Tax Writer Taxwriter Ltd
Columnist
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There are now two job support schemes (JSS). The original one designed for businesses that are legally required to close is now called JSS Closed, and the other one introduced by the Chancellor on 22 October for businesses that remain open but with employees working reduced hours: JSS Open.

The schemes may be used by the same business concurrently for different employees if it has premises in different areas, some of which are completely closed. A business could also move between the two schemes as the restrictions for the area it operates in change.

Businesses that qualify

The more generous JSS Closed can only be used by businesses which are required to close by the coronavirus regulations, such as under the tier 3 restrictions in England, or the similarly regulations in Wales, Scotland or Northern Ireland. However, where premises are restricted to delivery or collection services, or to serving food outdoors, they count as “closed” if located in a restricted area.

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Replies (14)

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By tom123
23rd Oct 2020 13:40

Interesting point about publishing the names.
Could have adverse effects, such as withdrawal of trade credit etc.

Thanks (0)
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By yelsnew
23rd Oct 2020 13:46

How are people advising OMB directors? No specific guidance so assume they only want the genuine employee directors with contracts.

How are awebbers handling this pool of clients?

Thanks (1)
Replying to yelsnew:
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By kar999
24th Oct 2020 13:50

yelsnew wrote:

How are people advising OMB directors? No specific guidance so assume they only want the genuine employee directors with contracts.

How are awebbers handling this pool of clients?

One day a week training, admin and marketing possibly?

Thanks (0)
Replying to yelsnew:
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By bendybod
26th Oct 2020 10:06

If the business is closed then fair enough.

If the business is open then, on the same basis as flexi furlough - I don't believe a director can be on flexi furlough if they are doing any work in the business as they don't have employment hours. Neither can a director be working 1/5 of their normal hours - on the same basis that a director works as many hours as is required for the business in the absence of an employment contract that stipulates hours.

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Replying to bendybod:
All Paul Accountants in Leeds
By paulinleeds
26th Oct 2020 11:02

Most rules say that directors and employees are still 'employees' for most payroll related reasons even if they do not have an employment contract. Directors were not excluded under the CJRS, so why under the JSS?

Directors may work all hours god sends and as required, but they still have normal hours, whether that be 40 hours per week or 70 hours per week. Under flexible furlough I've asked how many hours they worked and what their usual hours were.

Thanks (2)
Replying to paulinleeds:
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By kar999
26th Oct 2020 11:16

This article was based on the 33% JSS but seems to agree... See crunching the numbers section..

Crunching the numbers – how the average limited company contractor fares

https://www.contractoruk.com/news/0014731why_job_support_scheme_falls_sh...

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Replying to yelsnew:
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By kevin503
26th Oct 2020 10:54

Or advising genuine working director paid through PAYE salary, but no written contract?

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By DMS
26th Oct 2020 10:29

A company is classed as closed if it is ordered to close, but still provides takeaways. To provide takeaways, it needs staff to work. So, a restaurant has 10 staff, and uses 3 to provide takeaways. I have some questions:
1. Does the class of JSS apply to the company as a whole, or to each individual worker? The article refers to separate outlets in different tiers being able to mix and match, so how do we handle a single outlet with mixed staff?
2. Can we claim under JSS Open for the 3 working staff, and under JSS Closed at the same time for the 7 furloughed staff?
3. If we can't claim under the 2 schemes, then if we claim under JSS Closed the 3 working staff will be prejudiced. If we claim under JSS Open the 7 non-working staff will be prejudiced.
I suspect there will be a number of clients in this position. I hope they wont be forced into avoiding the provision of takeaways in order to provide for all thee staff?

Thanks (0)
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By Telvixius
26th Oct 2020 15:12

If your client has not claimed JRS but is claiming JSS will they then be entitled to the JRB? Or is this only available to those that have claimed JRS?

Any help gratefully received!

Thanks (0)
Replying to Telvixius:
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By DMS
26th Oct 2020 15:42

This is not definitive, but the rules as they currently stand prohibit a claim for JRB. That doesn't mean they can't change, as we well know. However, the JRB was originally put in place on the assumption that the CJRS scheme was finishing on 31 October. Now that further monthly government support is available from November onwards, I wouldn't be surprised to see the JRB pulled.

On another point, even if the JRB remains available, we don't know if the minimum income requirement of £1560 can include payments under the new JSS.

Thanks (1)
Replying to DMS:
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By raycad
27th Oct 2020 11:21

Actually, it looks like the JRB will be paid come what may. This is from the HMRC Agent Update published today:

"Employers can still claim the Job Retention Bonus if they make a claim for that employee through the Job Support Scheme, as long as they meet the eligibility criteria for both."

Thanks (0)
Replying to raycad:
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By DMS
27th Oct 2020 11:36

Thanks for that. I was musing from the point of view of common sense, but clearly that isnt necessarily wise. The JRB was intended to incentivise businesses to keep staff on after the CJRS stopped. Now that the support has been renewed, what purpose does it serve?
Anyway, there are 120 sleeps till it can be claimed. Plenty of time for multiple changes in policy and rules.

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By CJaneH
26th Oct 2020 15:22

It seems to me that for directors of companies with no income it was permitted to ignore admin work and providing the company generated no income then company could claim max furlough available. ( Below tax & NI salary paid in full to directors, 80%, 70% 60% claimed as appropiate.

If still no income generating work for that director then they cannot work 20% of hours therefore cannot claim at all.

Does any body agree or disagree.

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Replying to CJaneH:
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By kar999
26th Oct 2020 17:16

CJaneH wrote:

It seems to me that for directors of companies with no income it was permitted to ignore admin work and providing the company generated no income then company could claim max furlough available. ( Below tax & NI salary paid in full to directors, 80%, 70% 60% claimed as appropiate.

If still no income generating work for that director then they cannot work 20% of hours therefore cannot claim at all.

Does any body agree or disagree.

Furloughed Directors were only permitted to do Statutory work previously and no other admin whatsoever. 20% Admin, marketing and training in order to generate future revenue/employment for OMB director freelancers is presumably allowance.

Thanks (3)