Coronavirus Job Retention Bonus details released
Further to the Chancellor’s ‘Plan for Jobs’ announcement in July, the one-off £1,000 payment referred to as the Coronavirus Job Retention Bonus (‘CJRB’) has been of particular interest to employers. This is another unique scheme aiming to avoid redundancies as a result of the Coronavirus pandemic. As always, detail is key, and we have set out the important points below. The current guidance can be found here and further information is expected in September.
Employers will be eligible to claim the CJRB in respect of a particular employee if:
— They have previously furloughed that employee and were eligible to claim for them under the Coronavirus Job Retention Scheme
— The employee remains continuously and “meaningfully” employed from the last furlough claim until at least 31 January 2021
— The employee earns a minimum of £520 a month on average between 1 November 2020 and 31 January 2021, with the employee receiving some earnings in each of these three calendar months
— The employer has up to date RTI records for the period to the end of January 2021
However, employers will not receive the CJRB in respect of a particular employee:
— Until they have filed PAYE for January 2021 – CJRB payments will then be made to employers from February 2021
— If the employee is serving contractual or statutory notice that started before 1 February 2021
— If they incorrectly made a claim under the Coronavirus Job Retention Scheme for an employee (it is not clear from the guidance whether this would prevent CJRB payments in their entirety or only a CJRB payment in respect of that particular employee incorrectly claimed for)
— If they have failed to keep complete records and cannot answer HMRC’s queries to its satisfaction
Employers can claim the CJRB for all eligible employees, including office holders, company directors and agency workers, including those employed by umbrella companies.
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This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. This update relates to the prevailing circumstances at the date of its original publication and may not have been updated to reflect subsequent developments. If you have general queries about our updates, please email: email@example.com