Coronavirus – How to Claim the Job Retention Bonus

12th August 2020 | News

Last month the Chancellor announced the introduction of the Coronavirus Job Retention Bonus in an effort to reduce the number of people being made redundant as the furlough scheme unwinds. The bonus rewards employers who successfully bring back employees after being furloughed.

More guidance around the bonus has now been released and we’ve summarised the key points you need to know below.

What Is The Job Retention Bonus?

The Government is awarding £1,000 to UK employers for every eligible employee, previously furloughed, who remains continuously employed until the end of January 2021.

Is It Taxable?

Yes, it has recently been confirmed that the bonus will be taxable so a business must include the whole amount as income when calculating Corporation Tax or Self-Assessment.

Which Employers Can Claim The Job Retention Bonus?

The rules are fairly simple. The business must:

  • Have previously claimed for its employees under the Coronavirus Job Retention Scheme
  • Be up to date with its PAYE payments
  • Have a valid PAYE registration in February 2021
  • Have a UK bank account.
  • HMRC will withhold payment of the Job Retention Bonus where it believes there is a risk that Coronavirus Job Retention Scheme claims may have been fraudulently claimed or inflated until the enquiry is completed.

Which Employees Can I Claim For?

Claims will only be accepted for employees that were eligible for the scheme. Where a claim for an employee was incorrectly made, the Job Retention Bonus will not be payable.

Employers Will Be Able To Claim For Employees Who:

  • Were furloughed and had a Coronavirus Job Retention Scheme claim submitted for them
  • Have been continuously employed by the relevant employer from the time of the employer’s most recent claim for that employee until at least 31 January 2021
  • Have been paid an average of at least £520 a month between 1 November 2020 and 31 January 2021 (a total of at least £1,560 across the 3 months). The employee does not have to be paid £520 in each month but must have received some earnings in each of the three calendar months that have been paid and reported to HMRC via Real Time Information submissions
  • Are not serving a contractual or statutory notice period that started before 1 February 2021
  • Employers can claim the Job Retention Bonus for all employees who meet the above criteria, including company directors. Claims will only be accepted for employees that were eligible for the scheme. Where a claim for an employee was incorrectly made, the Job Retention Bonus will not be payable

How Do I Claim The Job Retention Bonus?

Employers will be able to claim the Job Retention Bonus through GOV.UK from February 2021. More detail about this process will be published in guidance by the end of September 2020.

Get In Touch

As always, if you would like any further information on your options or any of the other changes announced, please contact your usual Williamson & Croft contact. Otherwise, feel free to contact our offices on 0161 399 0121 / 0151 303 3112 or by email info@williamsoncroft.co.uk.

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

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