Job Retention Bonus Scheme (Update)

HMRC have released more information regarding the Job Retention Bonus Scheme, which was originally presented to Parliament on 8th July 2020.

JOB RETENTION BONUS
HMRC have recently announced a new 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 31st 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 31st January 2021.

Eligible employees must earn at least £520 a month on average between 1st November 2020 and 31st January 2021. 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.

Which employers can claim the Job Retention Bonus?
- Any employer will be able to claim the bonus for any employees that were eligible for the Coronavirus Job Retention Scheme and they have claimed a grant for.
- All employers are eligible including recruitment agencies and umbrella companies
- Applicable employers should however ensure they pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system for all employees

Which employees can an eligible employer claim the Job Retention Bonus for?
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.
- Have been continuously employed by the relevant employer from the time of the employer`s most recent claim for that employee until at least 31st January 2021.
- Have been paid on average of at least £520 a month between 1st November 2020 and 31st January 2021 (a total of at least £1,560 across the three months). The employee does not have to be paid £520 in each month but must have received some earnings in each of the three calendar months that have been paid and reported to HMRC via RTI.
- Have up to date RTI records for the period to the end of January.
- This includes employees who are office holders, company directors and agency workers, including those working for umbrella companies.
What earnings can be included in the £520 a month average minimum earnings threshold?
- Only earnings recorded through HMRC Real Time Information (RTI) records can count towards the £520 a month average minimum earnings threshold

What about employees returning from statutory parental leave?
- If an employee was on statutory parental leave, returned after 10th June 2020 and was claimed for under the scheme then the employer will be able to claim the Job Retention Bonus in respect of that employee provided the other eligibility criteria are met.

How can an employer claim the Job Retention Bonus?
- From February 2021, employers will be able to claim the Job Retention Bonus through GOV.UK. More details about this process will be published in guidance by the end of September 2020

How much will employers be able to claim?
- The Job Retention Bonus will be a one-off payment of £1,000 to the employer for every eligible employee that is claimed for. 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.

What should employers do now if they intend to claim the Job Retention Bonus?
- Employers should ensure that their employee records are up to date, including accurately reporting their employee`s details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system. Employers should also make sure all of their Coronavirus Job Retention Scheme claims have been accurately submitted and any necessary amendments have been notified to HMRC.

For further information and guidance please see the link below to HMRC.
https://www.gov.uk/government/publications/job-retention-bonus/job-retention-bonus