COVID-19: Payroll co-funding scheme update
This morning the Government of Jersey issued further amendments to the payroll co-funding scheme and details of it’s extension to the end of March 2021. We have listed the key points below:
Payroll co-funding changes from August 2020 onwards:
- Eligibility of employees has simplified to those who are either:
- classified as entitled or entitled to work, or
- registered on any social security schedule in March 2020
This includes people who are hired as replacement employees for anyone who has left the business since March 2020 but the total number of employees claimed for must not exceed the number on the March schedule.
- A business must be open and trading if public health restrictions allow it to do so and it must not artificially restrict revenue (by for example reducing trading hours) in order to meet the material detriment test.
- Material detriment remains a 30% reduction in turnover or income in the relevant month, but there are now two methods to calculate material detriment which are:
- comparison with the same month in 2019
- a period of 3 months, ending with the month of the claim, compared to the same period last year
More details of all the criteria and how to apply is on the payroll co-funding page of our website.
Payroll co-funding support September 2020 – March 2021
The Government announced that the Payroll co-funding scheme will continue, but be phased out, over a period from September 2020 to March 2021.
Key points to note for this period:
- There will be no change to the industries that are eligible to claim
- Material detriment test will reduce to 20% of income or turnover
- The subsidy will still be based on a maximum salary of £2000 per month but will reduce over time from September 2020 to March 2021 as follows:
- Sept-Oct 2020: Subsidy will be 60% or £1200 per employee
- Nov-Dec 2020: Subsidy will be 40% or £800 per employee
- Jan-Feb 2021: Subsidy will be 30% or £600 per employee
- March 2021: Subsidy will be 20% or £400 per employee
If you have any concerns about the future prospects for your business or have new opportunities that you can pursue, our 1:1 financial planning support can help you make better decisions about your options. To apply for support please click here.
Finally, keep looking at our website www.jerseybusiness.je/coronavirus which is being constantly updated with information and guides.