The Chancellor presented his ‘Plan for Jobs’ outlining how the government will support the UK’s economic recovery while continuing to prioritise people’s health. As part of this, the government introduced the Job Retention Bonus to provide additional support to employers who keep on their furloughed employees in meaningful employment, after the government’s Coronavirus Job Retention Scheme ends on 31 October 2020.
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. All employers are eligible for the scheme including recruitment agencies and umbrella companies.
So what are the terms?
Eligible employees must earn at least £520 a month on average between the 1st November 2020 and 31st 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.
If you intend to claim the Job Retention Bonus you must:
- Ensure all your employee records are up to date
- Accurately report employees’ details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system
- Make sure all of your CJRS claims have been accurately submitted and you have told us about any changes needed (for example if you’ve received too much or too little).
All of which we can help you with.
Employers can claim the Job Retention 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.
The bonus will be taxable, so the business must include the whole amount as income when calculating their taxable profits for Corporation Tax or Self-Assessment.
If you have any further queries about this bonus scheme, contact us on 02085300720 or email businessdevelopment@nordens.co.uk
