Job Retention Bonus Scheme

Job Retention Bonus Scheme

As you may be aware, the Chancellor recently announced the Government’s new ‘Job Retention Bonus’ scheme.  The scheme has been created to incentivise companies to retain employees which have been previously furloughed under Coronavirus Job Retention Scheme.  The government is offering companies £1,000 for each employee furloughed who continues to be employed until 31 January 2021.  Any bonus amounts received are attributable to the company and can be retained by the company.

In order for a company to be able to claim for an employee, the following criteria must have been met:

    • The employee must have been placed on the furlough scheme and included on a previous furlough claim prior to 30 June 2020 for a minimum of 3 weeks;
    • The employee must have remained employed for at least 3 months following the cessation of the scheme on 31 October 2020;
    • The employee must be included on the company’s RTI payroll submissions until 31 January 2021;
    • The employee must be paid an average gross wage of £520 per month, for the 3 months from 1 November 2020 to 31 January 2021;
    • Employees cannot be serving a notice period during the 3 months. In order to be eligible an employee cannot commence their statutory notice period until at least 1 February 2021.

HMRC has confirmed that company office holders, such as directors and shareholders, are also eligible to be part of a claim if they have satisfied the above criteria.

At present, HMRC has not indicated that a cap will be imposed on the number of employees an employer is eligible to receive the bonus for.

Companies will be eligible to make claims from February 2021, further guidance is yet to be released on this however Kilsby Williams will be available to assist in the claims process.  If you require further information please contact Ellis Potter – ellis.potter@kilsbywilliams.com or 01633 653153.