How do I claim the £1,000 Job Retention Bonus?

How do I claim the £1,000 Job Retention Bonus?

On Friday 2nd October the Government issued new guidance on how to claim the £1,000 Job Retention Bonus.

The Coronavirus Job Retention Scheme (CJRS) has helped employers pay the wages of over 9.6 million UK employees. The total value of claims made as at 20 September stands at £39.3 billion.

The Job Retention Bonus is intended to incentivise businesses to bring back those employees who are currently furloughed.

The Government will pay businesses a £1,000 one-off taxable payment for every eligible employee furloughed and kept continually employed until 31 January 2021.You will be able to claim the bonus between 15 February 2021 and 31 March 2021. You do not have to pay this money to your employee.

Which employees can I claim for?

You can claim for employees that:

  • you made an eligible claim for under the CJRS
  • you are planning to make a claim for through the new Job Support Scheme
  • you kept continuously employed from the end of the claim period of your last CJRS claim for them, until 31 January 2021
  • are not serving a contractual or statutory notice period for you on 31 January 2021 (this includes people serving notice of retirement)
  • you paid a salary to in each relevant tax month and enough to meet the Job Retention Bonus minimum income threshold

Employers can claim the bonus for individuals who are not employees such as office holders and agency workers as long as the employer claimed a grant for them under the CJRS and the other eligibility criteria are met.

What is the minimum income threshold?

You must have paid the employee an average of at least £520 per month between 1 November 2020 and 31 January 2021 (at least £1,560 (gross) between the period of 6 November 2020 to 5 February 2021).

Examples of employees and the minimum income threshold

What about employees who have been transferred under TUPE?

To claim the Job Retention Bonus for employees that have been transferred to you under TUPE, you must have furloughed and successfully claimed for them under the Coronavirus Job Retention Scheme, as their new employer. The employees must also meet all the relevant eligibility criteria for the Job Retention Bonus.

This means you will not be able to claim the Job Retention Bonus for any employees who are transferred to you after the Coronavirus Job Retention Scheme closes on 31 October 2020.

When can employers start to claim?

Employers will be able to claim the bonus between 15 February 2021 and 31 March 2021.Further guidance will be issued by the end of January 2021 with details on how to access the online claim service.

You will have until 31 March 2021 to make a Job Retention Bonus claim. After which the scheme will close and no further claims will be accepted after this date.

How should I prepare to claim?

Before an employer can claim the bonus, they will to need to have reported all payments made to your employee between 6 November 2020 and 5 February 2021 to HMRC through Full Payment Submissions via Real Time Information (RTI).

Employers must:

  • still be enrolled for PAYE online
  • comply with their PAYE obligations to file PAYE accurately and on time under Real Time Information (RTI) reporting for all employees between 6 April 2020 and 5 February 2021
  • keep their payroll up to date and report the leaving date for any employees that stop working for them before the end of the pay period that they leave in
  • use the irregular payment pattern indicator in Real Time Information (RTI) for any employees not being paid regularly
  • comply with all requests from HMRC to provide any employee data for past Coronavirus Job Retention Scheme claims

What if I need help to claim the Job Retention Bonus? 

Please get in touch with our your usual relationship manager here at Jackson Stephen who will be happy to help.