The Job Retention Bonus

The Job Retention Bonus was introduced to provide additional support to employers who keep on their previously furloughed employees in meaningful employment, after the government’s Coronavirus Job Retention Scheme ends on 31 October 2020.

How much is it worth?

Under the Job Retention Bonus employers will receive a bonus of £1,000 for every employee who was previously furloughed and is kept on until at least 31 January 2021, provided they meet the below eligibility criteria.

The bonus is payable to employers, and is not passed onto the employees.

Which employees does the scheme relate to?

Employees must have been:

·         continuously employed by the company from the time of the company’s most recent claim for that employee until at least 31 January 2021

·         paid an average of at least £520 a month between 1 November 2020 and 31 January 2021. Whilst the employee does not have to be paid £520 each month, they need to have been paid at least £1,560 across the three months and have some earnings reporting via RTI every single month

·         included on up-to-date RTI records which are available for the period to the end of January 2021

·         not serving a contractual or statutory notice period, that started before 1 February 2021, for the employer making a claim.

Are office holders who were furloughed included in the scheme?

Employers can claim the Job Retention Bonus for all employees who meet the above criteria, including office holders, company directors and agency workers, including those employed by umbrella companies.

When and how can employers make a claim?

From February 2021, employers will be able to claim the Job Retention Bonus through GOV.UK. The exact details are expected to be published by the end of September 2020.

Is the Job Retention Bonus Taxable?

Yes, as with the Job Retention Grant, the Job Retention Bonus must be included as income when calculating the business’s taxable profits.

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