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Introduction of Job Retention Bonus
Introduction of Job Retention Bonus
Post date
July 2020
Today the Chancellor announced the introduction of the Job Retention Bonus
This is a one-off payment of £1,000 to employers that have used the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remains continuously employed until 31 January 2021. The bonus will provide additional support to retain employees.
To be eligible, employees will need to:
- earn at least £520 per month (above the Lower Earnings Limit) on average for November, December and January
- have been furloughed at any point and legitimately claimed for under the Coronavirus Job Retention Scheme
- have been continuously employed up until at least 31 January 2021.
Employers will be able to claim the bonus from February 2021 once accurate RTI data to 31 January has been received. More information about this scheme will be available by 31 July and full guidance will be published in the Autumn.
Other new measures announced
The Chancellor also announced other measures, including:
- the Eat Out to Help Out Scheme – during August, diners can get 50% off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes and other establishments that have registered
- VAT reduction – from 15 July until 12 January 2021, the UK government will cut VAT from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol. This VAT reduction also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites, as well as attractions like cinemas, theme parks and zoos
- an increase in the Stamp Duty Land Tax (SDLT) threshold in England and Northern Ireland – increasing the threshold under which no SDLT is paid on the purchase of a main home from £125,000 to £500,000, with immediate effect until 31 March 2021.
Further information is on GOV.UK.
Updates on CJRS scheme
Key dates on the CJRS scheme that might affect you:
Claiming for employees furloughed on or before 30 June
Claims must be submitted by 31 July for employees furloughed through the Coronavirus Job Retention Scheme (CJRS) for periods ending on or before 30 June.
Changes from 1 August
The CJRS grant will no longer cover National Insurance (NI) and pension contributions for furloughed employees from 1 August. August claims can be submitted in advance, from 20 July.
Working out your claims
HMRC online examples and calculator can help to work out what you can claim, for claims ending on or before 31 July. From 10 July you will also be able to use these to help you work out claims ending on or before 31 August. Search for 'calculate how much you can claim using the Coronavirus Job Retention Scheme' on GOV.UK.
Made a mistake on your claim?
You can now delete a claim online within 72 hours of submitting it. Search 'claim for wages through Coronavirus Job Retention Scheme' on GOV.UK.
Calls to customers
HMRC are contacting selected employers to discuss their claims. These calls will be to check employers haven’t made any mistakes and to help make sure the correct amount is being claimed.
Please speak to us at AKC Payroll if you would like any assistance or want to discuss any aspects of the above.
