Published: October 30th, 2020 in Finance News
The Job Retention Bonus is set to benefit millions of employers across the country. However, if you are unsure as to whether you can claim the new bonus, we have explained who can claim the Job Retention Bonus here.
On hand to support the millions of employers that have retained furloughed employees, the Chancellor of the Exchequer Rishi Sunak announced the new £9 billion Job Retention Bonus on the 2nd of October 2020.
Although employers are only able to claim the Job Retention Bonus from 15th February 2021, we understand that many will be wondering who can claim the Job Retention Bonus, and whether they are eligible.
With this in mind, we have outlined the terms and conditions for claiming the bonus below. This includes who is eligible to claim, and who may be unable to take advantage of the additional financial support.
What Is the Job Retention Bonus and How Will I Benefit from It?
Stating that “the Job Retention Bonus is an additional boost employers can receive on top of the extensive support already put in place for businesses…” Rishi Sunak has confirmed that the Job Retention Bonus will offer a one-off taxable payment of £1,000 to employers for each employee that they have furloughed and continued to employ until January 2021.
Unlike the Coronavirus Job Retention Scheme, the bonus provided by the Government does not have to be paid to the employee. This payment is purely a bonus awarded to the employer.
Who Can Claim the Job Retention Bonus?
As touched on above, employers across the United Kingdom that have furloughed their employees via the Coronavirus Job Retention Scheme but retained them until January 2021 can claim the Job Retention Bonus.
If, in addition to claiming the Coronavirus Job Retention Scheme for your employers, you have claimed a grant for any agency workers under the Coronavirus Job Retention Scheme, you may also be able to claim the Job Retention Bonus for them.
Although agency workers are not classed as employees, if you have claimed a Job Retention Scheme grant for agency workers, and you are able to meet the additional terms and conditions for claiming the Job Retention Bonus that are outlined below, you will be eligible for the additional financial support bestowed by the Government.
You will also be able to claim the Job Retention Scheme for employees of a business that were transferred to you. However, similarly to the above points, you must have claimed for them under the Coronavirus Job Retention Scheme as and when they began working for you.
Terms and Conditions for Claiming the Job Retention Bonus
Although many employers may be under the impression that simply retaining employees will see them entitled to obtaining the Job Retention Bonus, this is not true.
If you have furloughed and retained an employee, you must meet the criteria set out by the Chancellor of the Exchequer.
To guarantee that you can claim the Job Retention Bonus you must be able to prove that you;
- Have claimed the Coronavirus Job Retention Scheme for the employee that you are hoping to obtain the Job Retention Bonus for.
- Have consistently employed the employee that you are hoping to obtain the Job Retention Bonus for from the date that your Coronavirus Job Retention Scheme claim began, until the 31st January 2021.
- Have paid your employee at least the minimum income threshold between 6th November 2020 and the 5th February 2021. Although payments do not have to equal the same amount of money each month, the Government has outlined that an employee must have been paid at least £1,560 over the course of the three months. It should be noted that it has been confirmed that only payments that are considered as taxable pay will count towards the minimum income threshold.
- Are enrolled for PAYE online and have filed all employee PAYE reports between 6th April and 5th February 2021.
Who Cannot Claim the Job Retention Bonus?
Although the Government aims to support all employers across the country, there are unfortunately a number of reasons as to why you may be unable to claim the Job Retention Bonus.
If HMRC determines that your employee was not eligible for the Coronavirus Job Retention Scheme, you will unfortunately be unable to claim the bonus.
In addition, if you have repaid the Coronavirus Job Retention Scheme grants provided by the Government, you will also be unable to claim the Job Retention Bonus.
Furthermore, as outlined above, if you have not paid an employee at least £1,560 between 6th November 2020 and 5th February 2021, you will not be entitled to claim the Job Retention Bonus.
You will also be ineligible to claim the Job Retention Bonus if any of your employees are currently serving a contractual or statutory notice period at the time of submitting a claim.
When Can I Claim the Job Retention Bonus?
The Job Retention Bonus will open on the 15th February 2021. You will then have until 31st March 2021 to make the relevant number of claims that you are entitled to.
Contact Us for Further Support and Advice
If you are hoping to claim the Job Retention Bonus but are in need of assistance with regards to preparing supporting evidence required by the Government, we are on hand to help you.
From filing your PAYE Real Time Information reports to ensuring that your payroll is up to date, at The Financial Management Centre, we can provide you with a wealth of services to guarantee that when the time comes, claiming the job retention bonus is a somewhat straightforward process for you.
If we currently manage your accounts for you, we will be authorised to claim the Job Retention Bonus on your behalf.
We will, of course, ensure that you remain up to date with this and are aware of the claims filed.
As you wait for the Job Retention Bonus to open on the 15th February 2021, if you have any questions that will help prepare you, please do not hesitate to contact us.
