Background
The Coronavirus Job Retention scheme (CJRS) is ending on 31 October 2020.
For the final month of CJRS, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
The Government have announced that under the Coronavirus Job Retention Bonus Scheme “CJRB” employers who have claimed under CJRS are able to claim a one-off bonus for every employee who they have previously claimed for under the CJRS scheme and who remains in their employment to 31 January 2021.
What we know
- Employers will receive a one-off bonus of £1,000 for every employee who they previously claimed for under CJRS, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021.
- An employer will be able to claim the CJRB for any employees that were eligible under CJRS and they have claimed a grant for. Where a claim for an employee was incorrectly made, a CJRB will not be payable.
- All employers are eligible for the scheme including recruitment agencies and umbrella companies.
- An employer will not be eligible for the CJRB if the employee is serving a contractual or statutory notice period, that started before 1 February 2021.
- The bonus will be taxable, so the business must include the whole amount as income when calculating their taxable profits for Corporation Tax or Self-Assessment.
How to claim
From February 2021, employers will be able to claim the CJRB through www.gov.uk.
Useful Links
Job Retention Bonus
