When the Chancellor announced his package of measures in July, he included a Job Retention Bonus. This is a £1000 one-off taxable payment to employers for each eligible employee that they furlough and keep continuously employed until 31 January 2021.
Now HMRC have issued guidance on the scheme which clarifies that employers will be able to claim the bonus between 15 February and 31 March 2021 and that they do not have to pay this money to the employee. Available here this guide includes details of eligible employees, including those have been transferred under TUPE or due to a change in ownership.
Among other details, the guide specifies that, to meet the minimum income threshold, an employer must pay the employee a total of at least £1560 (gross) throughout the tax months: 6 November to 5 December 2020; 6 December 2020 to 5 January 2021; and 6 January to 5 February 2021. Only payments recorded as taxable pay will count towards the minimum income threshold.
HMRC has also published a guide to help us understand who is eligible: “Examples of employer deciding which employees will meet the minimum income threshold for the Job Retention Bonus” which can be found at: www.gov.uk/government/publications/find-an-example-of-employees-and-the-minimum-income-threshold-for-the-job-retention-bonus
We’re expecting further guidance on this to be released in January 2021 but in the meantime if you need any HR advice on anything at all, please get In touch.
*This publication is a general summary of the current guidance and is up to date at the time of publishing. It should not replace advice tailored to your specific circumstances.
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