Coronavirus - Job Retention Scheme - Update 27/08/20

COVID Virus

Back in July the Chancellor announced that the Government have set up a ‘Job Retention Bonus’ scheme.

Summary

The Job Retention Bonus (JRB) is a scheme whereby employers who bring back staff who were on furlough (covered by the Job Retention Scheme (CJRS)) at any point during the coronavirus, receive a one-off £1000 bonus per employee. The bonus is only available whereby the employee remains continuously employed until the end of January 2021.

Updates

Which employers can claim?

Employers that were eligible to claim the Coronavirus Job Retention Scheme for employees, 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

NOTE: 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 an eligible employer claim for?

  • Employees that were furloughed and who had a CJRS claim submitted for them that meets all relevant eligibility criteria for the scheme;
  • Employees continuously employed by the relevant employer from the time of the most recent claim for that employee until at least 31st January 2021;
  • Employees paid an average of at least £520 a month between 1st November 2020 and 31st January 2021. The employee does not have to have been paid £520 each month but must have received some earnings in each of the three calendar months;
  • Employees with up to date RTI records for the period to 31st January 2021;
  • Employees that are not serving a contractual or statutory notice, that started before 1st February 2021.

NOTE: Only earnings recorded through HMRC Real Time Information (RTI) records can count towards the £520 a month average minimum earnings threshold.

Employees transferred under TUPE or due to a change in ownership

  • A new employer may be eligible to claim the JRB in respect of employees of a previous business which transferred to the new employer if either TUPE applies or PAYE business succession rules apply to the change of ownership.
  • The transferred employee must have been furloughed and successfully claimed for under the scheme by their new employer.
  • Employers will not be eligible for the JRB in respect of employees transferred under TUPE or under the business succession rules after 31st October 2020.

How to claim

  • From February 2021 employers can claim the JRS through GOV.UK. We expect more guidance on this by the end of September 2020.

Accounting

The bonus is taxable and so would have to be included as income when calculation taxable profits for Corporation Tax or Self-Assessment.

Keep in touch

We keep our clients up to date with BIG changes via our tips and tax advice bulletins, which will be sent by email.

These will include deadline reminders, particularly HMRC related, legislation updates and tax planning ideas. Where a change affects a client directly, we will, of course, be in touch personally, but at least these bulletins will give our clients advance warnings of changes ahead. Simply complete the form below to register.

Sign up here »


Get in touch

Northampton: 01604 678470

Milton Keynes: 07957 601496

Corby: 01536 216157

Rushden: 01933 312950

Email website@elsbyandco.co.uk