The government is introducing 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 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.
Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 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.
An employer will be able to claim the Job Retention Bonus for any employees that were eligible for the Coronavirus Job Retention Scheme and they have claimed a grant for. Where a claim for an employee was incorrectly made, a Job Retention Bonus will not be payable.
All employers are eligible for the scheme including recruitment agencies and umbrella companies.
Employers should ensure that they have:
• complied with their obligations to pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system for all employees;
• maintained enrolment for PAYE online;
• a UK bank account.
Employers must keep their payroll up-to-date and accurate and address all requests from HMRC to provide missing employee data in respect of historic Coronavirus Job Retention Scheme claims.
Failure to maintain accurate records may jeopardise an employer’s claim.
See: https://www.gov.uk/government/publications/job-retention-bonus/job-retention-bonus
For one-to-one advice, please do not hesitate to contact our Business Advisers on 0161 761 5231 or email theteam@horsfield-smith.co.uk.
