Rishi Sunak first announced the Coronavirus Job Retention Bonus in his Summer Economic Update on 8 July 2020. Since then, HMRC has provided more details on this scheme, under which employers will receive a one-off £1,000 bonus for each furloughed employee who is still employed as of 31 January 2021. Here’s what you need to know if you’re an employer who has been claiming from the Coronavirus Job Retention Scheme.
What is the Coronavirus Job Retention Bonus?
The Coronavirus Job Retention Bonus has been designed to help companies retain furloughed employees during these difficult times, supporting employers in their efforts to retain staff once the Coronavirus Job Retention Scheme ends on 31 October 2020.
Who is eligible for the Coronavirus Job Retention Bonus?
The bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Coronavirus Job Retention Scheme, and who remains continuously employed through to 31 January 2021. This includes office holders, company directors and agency workers, including those employed by umbrella companies. It is important to note that employees are only deemed eligible if they have earned at least £520 a month on average between 1 November 2020 and 31 January 2021 – a total of at least £1,560 across the 3 months. Likewise, bonus payments will not be made if HMRC believe that employers were fraudulently claiming under the scheme or a claim was incorrectly made.
When can employers claim for the Coronavirus Job Retention Bonus?
Employers will be able to claim the Job Retention Bonus through the GOV.UK website from February 2021.
How much will employers receive?
If all eligibility criteria is met, employers will receive £1,000 for each employee who is still in employment by 31 January 2021. It is worth noting that the bonus will be taxable, so your business will need to include the whole amount as income when calculating their taxable profits for Corporation Tax or Self-Assessment.
For more details, you can read the official guidance here.
We will keep you informed of all updates during this time so you can be aware of all the support being made available to you and your business. If you have any questions or enquiries, please get in touch with the team here, or call our Southend office on 01702 466 886.
