Jersey

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Coronavirus Payroll Co-Funding Scheme Phase I

• Phase 1 of the co-funding scheme is available from 20 March to 31 March 2020. Government will retrospectively pay employers (and self-employed workers) a subsidy of up to £200 per week towards each employee’s wage for business in the following sectors:
  • Hotels, restaurants, bars,
  • Wholesale,
  • Retail (excluding food),
  • Fisheries,
  • Hairdressing and other beauty treatment
• For pay periods including 20 March to 31 March 2020, these businesses can claim:
  • £200 per week per worker who has been paid either:- at least £320 per week,
  • or- at least £1,390 per calendar month
• For lower paid workers, these businesses can claim 60% of either:
  • (- 35%) of each worker’s usual monthly wage,
  • or (- 35%) of 4 x each worker’s usual weekly wage
• This scheme will come into effect for those in employment as at Friday 20th March 2020, with the first payment due at the beginning of April.“

Coronavirus Payroll Co-Funding Scheme Phase II

• Available from 1 April to 30 June 2020.  During this time, the scheme will be kept under review and may be extended if needed. Available to:
  • Businesses which do not operate in certain industries 
  • Self-employed workers who pay class 2 social security contributions. This includes sole traders and partnerships
  • Business which have, or are highly likely to, experience significant detriment due to restrictions put in place to manage the spread of coronavirus
• Qualifying businesses will be able to claim subsidies towards wages or salaries of qualifying workers that were working for the business in February 2020, and- were included in the social security contribution schedule for February 2020, and have been retained in employment
• The maximum subsidy available is 80% of the lower of each qualifying worker’s: normal rate, or - £2,000 a month
• This means a maximum cash payment of £1,600 is available per qualifying worker per month.
• Workers earning more than £10,000 a month do not qualify for the scheme.
• Payments under this phase 2 scheme will be made following the submission of the wage information to Customer and Local Services. The first payment will therefore be available following submission of wage information for the month of April 2020."

Jersey Covid-19 Special Situations Fund

• This £50 million scheme is open for applications from qualifying businesses which deliver a public good or serve an essential strategic purpose for Jersey.
• Applications will be considered by a panel of senior Government officials and independent specialists based on criteria to be published in April 2020, including:
  • Demonstration that the business provides an important public good, or is strategically important to Jersey
  • Demonstration that the measures introduced to manage the spread of coronavirus have been detrimental the business
  • A viable and time bound recovery plan for the business and exit strategy for Government
• Support may be provided under the scheme in the form of grants, loans or equity positions."

Rent deferrals or renegotiations;

• Where the Government, or a Government-owned company, is a landlord to a local business
• The Government will be sympathetic to its business tenants who are suffering financial difficulty as a result of the COVID-19 pandemic. Each request for rent deferral will be treated on a case by case basis.

Main sources of information

• Covid-19 Jersey tax measures
• Government support for businesses

Tax: John Riva – jriva@kpmg.com
Advisory: Mark Ashburn – mashburn@kpmg.com