Kate Upcraft explains the details of the job retention bonus as the law in the form of a Treasury direction has been published alongside HMRC guidance on the income threshold and examples. This scheme was cancelled on 5 November.
The purpose of this bonus scheme was to encourage employers to keep people in work until 31 January 2021. However, as the CJRS is now being extended to 31 March 2021, the policy intent of the bonus scheme no longer applies, so it will not be paid.
Claims for the £1,000 bonus per eligible employee, agency worker or office holder must be made between 15 February 2021 and 31 March 2021. This is a change of approach which will also be reflected in the job support scheme.
Under CJRS it was a case of ‘pay now, check later’ to ensure businesses had sufficient cashflow to make salary payments. But with the job support scheme (JSS) and the bonus scheme, HMRC will move to a ‘check first, pay later’ model, with RTI data validating claims. Where a CJRS claim is still being investigated this can delay the bonus payment being made by HMRC.
Employers will be eligible to claim the bonus for an employee, if that individual was included in a claim under the CJRS and they remain continuously employed until 31 January 2021. Employers can claim for the same employees under the JSS and receive the £1,000 bonus.
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