Job Retention Bonus

13 October 2020 | Blog

Further guidance for the Job Retention Bonus is now available from HRMC. It includes information about how you can check if your employees are eligible. It also gives advice on when you can claim the bonus.

You’ll be able to claim a one-off payment of £1,000 for every eligible employee you furloughed and claimed for through the Coronavirus Job Retention Scheme (CJRS). It can also include staff you kept continuously employed until at least 31 January 2021. You do not have to pay this money to your employee.

To be eligible, employees must earn at least £1,560 between 6 November 2020 and 5 February 2021. They must also have received earnings in the November, December and January tax months. Employees must also not be serving a contractual or statutory notice period for you on 31 January 2021.

You will be able to claim the bonus from 15 February until 31 March 2021. In addition, once you have submitted PAYE information for the period up to 5 February 2021. HMRC will let you know how you can make a claim when further guidance is published by the end of January.

You can still claim the Job Retention Bonus if you make a claim for the same employees through the Job Support Scheme. This is as long as you meet the eligibility criteria for both.

What you need to do now

If you intend to claim the Job Retention Bonus, you must:

  • keep your PAYE submissions up-to-date and on time, with Real Time Information (RTI) reporting for all employees, including reporting the leaving date for any employees that stop working for you in the month they leave or the next Full Payment Submission
  • use the irregular payment pattern indicator in RTI for any employees not paid regularly
  • provide any employee data for past CJRS claims that HMRC has requested
  • make sure all your CJRS claims have been accurately submitted and you have told us about any changes needed (for example if you’ve received too much or too little).

Coronavirus Job Retention Scheme – changes from 1 October

From 1 October, HMRC will pay 60% of usual wages up to a cap of £1,875 per month for the hours furloughed employees do not work.

You will continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work, up to a cap of £2,500 per month. You will need to fund the difference between this and the CJRS grant yourself.

The caps are proportional to the hours not worked. For example, if your employee is furloughed for half their usual hours in October, you are entitled to claim 60% of their usual wages for the hours they do not work, up to £937.50 (half of £1,875 cap). You must still pay your employee at least 80% of their usual wages for the hours they don’t work, so for someone only working half their usual hours you’d need to pay them up to £1,250 (half of £2,500 cap), funding the remaining portion yourself.

You’ll also continue to pay your furloughed employees’ National Insurance and pension contributions from your own funds.

The scheme closes on 31 October and you will need to make any final claims on or before 30 November. You will not be able to submit or add to any claims after 30 November.

Related Topics

New Role For Rennie!

New Role For Rennie!

Rennie has successfully completed his Digital Marketing Apprenticeship with The HR Booth!  Over the past 10 months, Rennie has been working through his portfolio and has completed a Diploma in Digital Marketing.  Not only that, Rennie has been working with us as a...

Highlights of the Month | September 2024

Highlights of the Month | September 2024

It has been a busy September for The HR Booth team! There has been various highlights as we have been out & about at events as well as appearing on podcasts, and you can read all about it below. We attended the Fife Business Expo in Dunfermline. It was great to...

How Many Sick Days Per Year UK – Managing Workplace Sickness

How Many Sick Days Per Year UK – Managing Workplace Sickness

One of the common topics we are asked about is around absence management and how many sick days per year an employee can take in the UK. While there isn’t a fixed number of sick days allowed by law, there are clear guidelines on Statutory Sick Pay (SSP) and best...

Upcoming Events at The HR Booth

Upcoming Events at The HR Booth

We have some upcoming events that we would like to share with you. To make this easier, we've put all the links and information that you need for these events, into one short article. All of the following events will be held in-person at our Glenrothes office in...

Highlights of the Month | August 2024

Highlights of the Month | August 2024

Let's take a look at our Highlights of the Month for August 2024. In Conversation with DYW Scotland We spoke to Michelle from DYW Scotland on who they are, what they do and what they can offer to young people within Scotland. It was a pleasure to embrace their No...

Managing Performance and Difficult Conversations

Managing Performance and Difficult Conversations

Latest Podcast Episode Check out the latest episode of our podcast which covers managing performance through having regular feedback sessions with your employees. Alistair also covers the topic of difficult conversations in the workplace.The Importance of Performance...

Are you ready to elevate your HR strategies?

Connect with our expert team for tailored solutions and insights. Call The HR Booth at 01383 668178 or reach out via email at info@thehrbooth.co.uk or use the contact form.

Let’s transform your human resources approach together!

Privacy Preference Center