HMRC has issued a policy paper ('Paper') providing more detail on the Job Retention Bonus ('Bonus'), due to be paid out in January 2021.
The Paper confirms the Bonus will be a one-off taxable payment of £1,000 in respect of every employee previously claimed for under the Coronavirus Job Retention Scheme (CJRS) who remains continuously employed until 31 January 2021. The payment will be made to the employer as an incentive for retaining staff, rather than as a payment to the individual.
Employers will be able to claim for staff who:
- were furloughed and in respect of whom a valid CJRS claim was made
- were continuously employed between the most recent CJRS claim to 31 January 2021
- were paid at least £520 per month between 1 November 2020 and 31 January 2021 (amounting to £1,560 over three months)
- have Real Time Information records for the period to 31 January 2021
- are not serving notice commencing before 1 February 2021
Where an employee has transferred via TUPE transfer before 31 October 2020, it may also be possible to claim the Bonus, on the condition the new employer had successfully made a CJRS claim for them following the transfer.
Employers will be able to claim the Bonus in February 2021 through a Government website, the details of which are yet to be provided. Details of the claims process will be published in guidance by the end of September 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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