Coronavirus (COVID-19) Job Retention Bonus – will you qualify?
During the Chancellor’s 8 July “Plan for Jobs” speech to Parliament Mr Sunak confirmed that the Job Retention Scheme will end 31 October. However in an attempt to avoid mass lay-offs he also announced a bonus of £1,000 for employers that retain previously furloughed staff through to at least 31 January 2021.
Details of the Job Retention Bonus are here but I’ll outline the takeaways below: https://www.gov.uk/government/publications/job-retention-bonus/job-retention-bonus
Job Retention Bonus Guidance – In Summary
1. The Job Retention Bonus is 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.
2. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021.
3. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.
4. Employers can claim the Job Retention Bonus for all employees who meet the above criteria, including office holders, company directors and agency workers
5. Claims can be made from February 2021 and the income received under this scheme will be taxable income for the business.
Common Employers Questions:
- Do previously furloughed directors qualify for the bonus? A: Yes.
- My employee’s furlough finished sometime before 31 October but they’ll continue to be employeed well after January 2021 – will I still qualify for the bonus for that employee? A: Yes.
- Is there any action to take now? A: Simply continue to maintain up to date payroll records and RTI submissions with HMRC. Then, as long as your retained (but previously furloughed) employees earn over £520 per month between November 2020 – January 2021 there should be no problem in qualifying for this bonus.
My previous COVID-19 posts can be found here:
- You’ve claimed the SEISS grant – What next?
- COVID-19 Self-Employed Income Support Scheme (SEISS): Get ready to claim
- COVID-19 Job Retention Scheme – Advice for Company Directors
- What financial support is available for UK businesses? – NOW UPDATED
- Can the Self-Employed go to work?
- Help for the Self-Employed and other FAQ’s
- Coronavirus (COVID-19): Help for the Self-Employed – PER THE 26 MARCH ANNOUNCEMENT
Enjoy saving tax?