The Job Retention Bonus scheme (‘the scheme’) has been introduced by the government as part of the Coronavirus support packages in order to support businesses in retaining employees who they furloughed under the Job Retention Scheme.
The scheme will provide a one-off taxable payment of £1,000 to the employer, for each eligible furloughed employee who is still employed as at 31 January 2021. The bonus does not have to be paid to the employee.
The online portal to make the claim will open on 15 February 2021 and you will have until 31 March 2021 to make a claim.
Who can you claim for
If you have furloughed employees at any stage under the Job Retention Scheme, you will be able to make a claim for each employee who meets the following criteria:
- You made a claim for them under the Job Retention Scheme
- They were continuously employed by you from the end of the last claim you made for them until 31 January 2021
- They are not serving a contractual or statutory notice period on 31 January 2021. This includes employees serving notice of retirement.
- You paid them in each relevant tax month (November 2020 to January 2021) and the amounts paid met the minimum income threshold specified in the scheme guidance (please see below)
- You have not repaid all of the grants received under the Job Retention Scheme to HMRC.
In addition, HMRC will not pay the bonus if you made an incorrect Job Retention Scheme claim or your employee was not eligible for the Job Retention Scheme.
The minimum Income Threshold
In order to make a claim for an employee, they must have been paid at least £1,560 as gross taxable income throughout the tax months:
- 6 November to 5 December 2020
- 6 December to 5 January 2021
- 6 January to 5 February 2021
In addition, you must have paid them in each of the above months.
- Job Support Scheme from 1 November 2020
- Check if you can claim for your employees’ wages through the Coronavirus Job Retention Scheme
- Work out 80% of your employees’ wages to claim through the Coronavirus Job Retention Scheme
- Claim for wages through the Coronavirus Job Retention Scheme
- HMRC Examples of how to calculate your employees’ wages and furloughed hours
- Coronavirus Job Retention Scheme calculator
- Register for PAYE Online
- Government Guidance for Employers
- Government Guidance in respect of layoffs and short time working
- Business Support Government Site
- ACAS – Employment Advice