The Job Retention Bonus has been introduced by the government as a means of additional support for those businesses that keep their furloughed employees in employment after the Coronavirus Job Retention Scheme (CJRS) ends on 31 October 2020.
What is the Job Retention Bonus?
It offers a one-off payment to employers of £1,000 for every employee, previously claimed for under CJRS, that remain in continuous employment through to 31 January 2021.
Can I claim for all furloughed employees?
- Claims can only be made for employees that were furloughed and successfully claimed for through the CJRS scheme;
- Where a claim for an employee was incorrectly made, a Job Retention Bonus will not be payable;
- Eligible employees must earn at least £520 a month, on average, between 1 November 2020 and 31 January 2021 (a total of £1,560 across the 3 months);
- The above earnings must have been recorded through HMRC Real Time Information (RTI) records;
- Employees must not be serving a contractual or statutory notice period that started before 1 February 2021; and
- All employees that meet the above criteria, including office holders, company directors and agency workers are eligible.
Am I eligible to make a claim?
All employers are eligible, ensuring they have:
- Filed and paid PAYE correctly and on time, under the Real Time Information (RTI) reporting system;
- Maintained enrolment for PAYE online; and
- Have a UK bank account.
How and when can I claim the bonus?
- Employers will be able to claim the bonus for eligible employees from February 2021, through GOV.UK;
- The bonus is a one-off, taxable, payment of £1,000 per eligible employee; and
- Further details on the application process will be made available by the end of September 2020.
To prepare to make a claim through the Job Retention Bonus scheme, it is important to ensure all employee records are up to date, including accurate reporting of employee details and wages through the Real Time Information (RTI) reporting system.
All CJRS claims should also be accurately submitted, notifying HMRC of any necessary adjustments.