***WITHDRAWN***Because of the extension of the JRS, the JRB of £1,000 per employee retained until the end of January 2021, has been shelved.
As part of its Covid-19 support for UK businesses, the Government is offering a bonus for each previously-furloughed employee kept on the payroll until the end of January 2021.
The Job Retention Bonus is a £1,000 one-off taxable payment to your business (as the employer), for each eligible employee that was previously furloughed, and kept continuously employed from the end of the claim period until 31 January 2021.
The bonus covers not only employees but also individuals who are non-employees (directors, for example), provided that a valid Coronavirus Job Retention Scheme claim was submitted.
How does the Job Retention Bonus work?
By claiming the bonus for all eligible employees and non-employees, you can boost your cashflow – a potential lifeline if your business is facing cash challenges due to the crisis.
So, how does the bonus work in practice?
- The claim portal will open on 15th February 2021 – HM Revenue & Customs (HMRC) will update the guidance before then. The claim portal then closes after 31st March.
- Payments made via the Job Retention Bonus scheme are taxable in the hands of the recipient (the employer), so you will pay tax on the money paid to you.
- The minimum income paid to each eligible employee is £1,560 taxable income in total over three ‘tax months’ to 5th February 2021, and at least one payment of any amount in each of the three months.
The key aim here is to encourage UK businesses to keep as many employees on the payroll as possible over the final months of 2020.
So, bear in mind that at least one payroll payment of any amount must be made to your employee every month from November 2020 (the next tax month) to January 2021, and must come to a total, over all three months, of at least £1,560 wage/salary per employee.
Helping you apply for the bonus
If you think your company may be eligible for the Job Retention Bonus, come and talk to us.
We’ll check whether you meet the criteria and can help you stick to the required guidelines for employment periods and wages paid to your employees. We can also help you to process the claim once the portal is open in February 2021.
Get in touch to find out if you’re eligible for the bonus.