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What Do You Need To Know About The Job Retention Scheme?
What Do You Need To Know About The Job Retention Scheme?


During the COVID-19 pandemic, the Chancellor announced that employers will be able to claim a Job Retention Bonus of £1,000 per furloughed employee if certain conditions are met.

So far the government has helped UK businesses pay their employees to the tune of £34 billion. Below is everything you need to know about the Job Retention Scheme.


Which employers can claim the Job Retention Bonus?


To make a successful claim, all UK businesses must have previously claimed for their employees under the Coronavirus Job Retention Scheme and be up to date with PAYE payments.

Businesses must also have a valid PAYE registration as of February 2021 along with a UK bank account. It is essential to note that the HMRC will withhold any payments they believe have been fraudulently claimed for.


Which employees can businesses claim for?


Below are the criteria that will allow businesses to make a successful job retention scheme claim:

  1. Were furloughed and had a Coronavirus Job Retention Scheme claim submitted for them.
  2. Have been continuously employed by you from the time of your most recent claim for that employee until at least 31 January 2021.
  3. Have been paid an average of at least £520 a month between November 1st 2020 and January 31st 2021 (a total of at least £1,560 across the 3 months).
  4. The employee does not have to be paid £520 in each month but must have received some earnings in each of the three calendar months that have been paid and reported to HMRC via RTI.
  5. Are not serving a contractual or statutory notice period, that started before February 1st 2021.



How do I make a successful claim?


In order to make a successful claim, you need to go through GOV.UK from February 2021. Further details about this process will be published in guidance by the end of September 2020.


Are any bonus payments taxable?


Bonuses will be taxable, so you must include the whole amount as income when calculating your taxable profits for Corporation Tax or Self-Assessment.


What if I need help?


If you require any further help in understanding if you are eligible to claim as part of the Job Retention Scheme, then you can get in touch with us here. Our highly skilled and experienced team are always on hand to contact by phone and email, ready to offer you support any time you require.