Job Support Scheme Open – financial impact test

*Update* On Thursday 5th November 2030, the UK government confirmed a further extension of CJRS until the end of March 2021 the JSS introduction is delayed.

Employers facing decreased demand who can claim JSS Open

Employers are eligible to claim the JSS Open if:

• an employer with 250 or more employees on 23 September 2020 has undertaken a Financial Impact Test demonstrating their turnover has remained equal or fallen to show they have been adversely affected due to coronavirus; an employer with less than 250 employees on 23 September 2020 is not required to satisfy the test
• some, or all, of their employees are working reduced hours – employees must still be working for at least 20% of their usual hours

Financial Impact test for large employers claiming JSS Open

Large employers claiming JSS Open (250 or more employees) need to complete a Financial Impact Test to evidence that their income has been impacted due to coronavirus. If the employer’s turnover has remained equal or has decreased compared to the previous year, then they will qualify. This test only needs to be taken once before the employers first claim for the Job Support Scheme.

Any charity with 250 or more employees that is registered with a UK charity regulator or are exempt from such registration will not be required to carry out the test and are eligible for this scheme.

Shareholder distribution

The government expects that large employers (250 or more employees) and their corporate groups will not make capital distributions whilst claiming the Job Support Scheme grant. This includes:

• dividend
• charge
• free or other distribution
• any equivalent payment that a partnership may make to its partners

The government encourages business to reflect on their responsibilities and that taxpayers should be able to rely on public money only being claimed where it is clearly needed.

Prepare for JSS

Businesses that are considering using the JSS scheme need to consider if they qualify based on size and financial impact. Plans need to be put place to develop the employee agreement and plan for any hours reduction.

If an employer qualifies, then it needs to identify who, and what their reference pay and hours are to compare working time and unworked time to enable claims to take place.

PAYadvice.UK 27/10/2020 updated 6/11/2020