Following the Chancellor’s announcement on 8 July of a Job Retention Bonus, the Government unveiled further details of the scheme on Friday.
Purpose of the scheme
The Job Retention Bonus will provide further support to employers who “keep on their furloughed employees in meaningful employment”, after the Government’s Coronavirus Job Retention Scheme (CJRS) ends on 31 October 2020.
Under the Bonus, the Government will make a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021.
It is anticipated that the bonus will help to support employment rates through the UK’s economic recovery from coronavirus by encouraging and helping employers to retain as many previously furloughed employees as possible.
Which employers can access the Bonus?
HMRC states that an employer will be able to claim the Job Retention Bonus for any employees that were eligible for the CJRS and that they have claimed a grant for.
Which employees can an eligible employer claim the Bonus for?
Employers will be able to claim for employees who:
Employers can claim the bonus for all employees who meet the above criteria, including office holders, company directors and agency workers, including those employed by umbrella companies. The above criteria must be met regardless of the frequency of the employee’s pay periods, their hours worked and rate of pay.
Employers will be able to claim the bonus after they have filed PAYE for January and payments will be made to employers from February 2021.
To access the Bonus, employers should ensure that they have:
Employers must keep their payroll up to date and accurate and address all requests from HMRC to provide missing employee data in respect of historic Coronavirus Job Retention Scheme claims. Failure to maintain accurate records may jeopardise an employer’s claim.
HMRC will withhold payment of the Job Retention Bonus where it believes there is a risk that Coronavirus Job Retention Scheme claims may have been fraudulently claimed or inflated, until the enquiry is completed.
Employers will be able to claim the bonus from February 2021 after they have filed PAYE for January and payments will be made to employers from February 2021. Further information about the process will be published in guidance by the end of September 2020.
We will let you know as soon as the guidance is published but for any advice in the meantime get in touch.