Job Retention Bonus: £1,000 per eligible employee
The Chancellor has announced several new financial measures that are designed to support employers following the coronavirus pandemic.
Job Retention Bonus. Under this new scheme, employers will be able to apply for a one-off bonus payment of £1,000 for each previously furloughed employee who is still in their employment on 31 January 2021 providing several other conditions are met.
Those conditions are that:
- the employee was properly furloughed in accordance with the Coronavirus Job Retention Scheme (CJRS) rules
- a CJRS claim was correctly submitted for that employee
- the employee has been continuously employed by you until at least 31 January 2021 , i.e. there have been no breaks in their employment
- the employee has been paid an average of at least £520 per month between 1 November 2020 and 31 January 2021 , i.e. at least £1,560 across those three months
- you have accurate and up-to-date RTI records for the period to 31 January 2021 .
The employee needn’t have been paid a total of £520 (or more) in each month between 1 November 2020 and 31 January 2021 but they must have received some earnings in each of those three months. If not, you can’t claim a £1,000 bonus payment.
Should a previously furloughed employee be in your employment on 31 January 2021 but at that point is serving out their contractual or a statutory notice period - perhaps because they have resigned or you’ve served them with notice of redundancy - you can’t claim the £1,000 bonus.
That said, if you are in a redundancy consultation process, but haven’t yet served a formal notice of redundancy, the bonus may be claimed if the other conditions are met.
Note. The £1,000 bonus may be claimed for employees and company directors.
How to claim
Like other CJRS payments, you will be able to apply for each £1,000 bonus payment online. This process will commence in February 2021.
Full details on how to submit a claim will be published at the end of September 2020 (see The next step ). Bonus payments will only be sent to a UK bank account.
Tip. There’s no limit on how many £1,000 job retention bonus claims you can submit. However, this isn’t a tax-free payment.
Tip. All bonus payments received must be declared as income when calculating your taxable profits for corporation tax or self-assessment purposes.