Job Retention Bonus Clarification for Employers
Following the announcement during the summer economic update by the Chancellor, Rishi Sunak, HMRC have published a policy paper on the eligibility requirements for employers seeking to claim the job retention bonuses.
Employers will be able to claim for employees who:
- Were furloughed and had a Coronavirus Job Retention Scheme (CJRS) claim submitted for them.
- Have been continuously employed by the relevant employer from the time of the employer’s most recent CJRS claim until at least 31st January 2021
- Earn at least £520 per month (a total of at least £1,560 across the 3-month period) on average between November 2020 and January 2021.
- Are not serving a contractual or statutory notice period, that started before 1st February 2021.
- Were transferred and the transfers were protected under the Transfer of Undertakings Regulations 2006 will be eligible for the job retention bonus, provided that the employees meet the other eligibility criteria and the new employer has submitted a coronavirus job retention scheme claim for that employee.
- Were furloughed and had a claim submitted for them after the 10th June 2020 deadline for new entrants into the CJRS, so long as they were returning from parental leave or serving as a military reservist.
This bonus will be for any employees that were placed on furlough and a CJRS claim was submitted, whether they have already been returned from furlough or are still currently furloughed.
Claims can be submitted from February 2021 through the Gov.uk website, further guidance on this process will be published shortly, with HMRC currently stating this will be before the end of September 2020.
The Job Retention Bonus is a one-off payment of £1,000 for every eligible employee. The bonus is taxable and as such must be included in full when calculation taxable profits.