Job Retention Bonus

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7th September 2020

Economic Advice & Solutions

HMRC have just published additional information on the Job Retention Bonus, including details on how to check which employers and employees are eligible and what you need to do now to get ready to claim.

You can find this information by going to GOV‌.UK and searching ‘Job Retention Bonus – Policy Statement’.

Job Retention Bonus

Employers will be able to claim a one-off payment of £1,000 for every employee they have previously received a grant for under the Coronavirus Job Retention Scheme (CJRS) and who remains continuously employed through to the end of Ja‌nu‌ar‌y 2021.

To be eligible, the employee must have received earnings in November 2020, December 2020 and January 2021, and must have been paid an average of at least £520 per month, and a total of at least £1,560 across the three months.

As the employer, you will be able to claim the bonus after you have filed PAYE information for Ja‌nu‌ar‌y 2021, and the bonus will be paid from Fe‌br‌ua‌ry 2021. More detailed guidance, including how employers can claim the bonus online will be available by the end of September.

What you need to do now

If you intend to claim the Job Retention Bonus, you must:

  • ensure all employee records are up to date
  • accurately report employees’ details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system
  • make sure all of your CJRS claims have been accurately submitted and you have told HMRC about any changes needed (for example if you’ve received too much or too little).

Reminder of changes to CJRS

From 1 Au‌gu‌st 2020 CJRS continue to provide grants for furloughed employees but no longer funds employers’ National Insurance (NI) and pensions contributions. Employers now have to make these payments from their own resources for all employees, whether furloughed or not.