The Job Retention Bonus Scheme Explained…

The Job Retention Bonus Scheme Explained…
Job Retention Bonus Scheme

With the Furlough Scheme coming to an end, HMRC has outlined the eligibility requirements for the Job Retention Bonus Scheme that will follow Furlough as part of the government’s measures to support the economy as we ease into the next phase of lockdown and the COVID-19 pandemic.

The government’s Coronavirus Job Retention Scheme ends on 31 October 2020 and the Job Retention Bonusaims to provide additional support to employers who keep on their furloughed employees in meaningful employment.

The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Furlough Scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. 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.

All employers are eligible for the scheme including recruitment agencies and umbrella companies. They should ensure that they have complied with their obligations to pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system, maintained enrolment for PAYE online and have a UK bank account.

Employers will be able to claim for employees who were furloughed and had a Coronavirus Job Retention Scheme claim submitted for them that meets all relevant eligibility criteria for the scheme.

All Employers taking part in the Job Retention Bonus Scheme must have up-to-date RTI records for the period to the end of January and not be serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim.

HMRC will publish further details about this process before the end of September 2020 and we will keep you posted as things progress.

If you would like to discuss how we can help you and your business get back to a new form of normal then we’d be happy to help.