Friend Partnership’s Payroll Manager Amy Cowling summarises the Government Job Retention Bonus which was initially discussed back in July 2020:
The Government have now advised (regardless of employer size and sector) that all UK employers will be eligible for the Job Retention Bonus who previously made a claim under the Coronavirus Job Retention Scheme. The bonus is intended to provide additional support to employers who keep on their furloughed employees in meaningful employment after the Coronavirus Job Retention Scheme ends on 31st October 2020.
The bonus is a one-off payment to employers of £1,000 for every employee they previously claimed for under the Coronavirus Job Retention scheme, and who remain continuously employed through to 31st January 2021.
Eligible employees must earn at least on average £520 a month between 1st November 2020 and 31st January 2021. The employee does not have to be paid £520 every month, but their average earnings across the 3 months must be at least £1,560. They must also have received some earnings in each of the three calendar months. Further details on this is to yet to be published by HMRC.
Eligible employees must not be serving a contractual or statutory period of notice starting before 1st February 2021.
The claim for the bonus can be made after the January 2021 PAYE submission to HMRC and payment will be made by HMRC from February 2021. Further details on how to make the claim have not yet been confirmed.
HMRC have advised that the bonus will be taxable, therefore businesses must include the whole amount as income when calculating their taxable profits for Corporation Tax or Self-Assessment.
We will issue further guidance on this scheme once additional information has been published by the Government. I expect this to be in the late Autumn.
If you have any questions about the Job Retention Bonus please contact Amy Cowling, Payroll Manager at Friend Partnership Limited on 0121 633 2012 or at firstname.lastname@example.org