Within the Plan for Jobs released by the UK Chancellor on the 8 July 2020 was a new Job Retention Bonus (JRB). This Job Retention bonus will provide additional support to employers who keep furloughed employees on the books and in meaningful employment, after the government’s Coronavirus Job Retention Scheme ends on 31 October 2020.
All employers who furloughed staff are eligible for the JRB. Good news for recruitment agencies is that they too are eligible!
In order to be eligible an employer must ensure that they have;
• Complied with their obligations to pay and file PAYE accurately and on time under the Real Time Information reporting system for all employees.
• Maintained enrolment for PAYE online
• Have a UK bank account
The bonus is a one-off payment of £1000 for every furloughed employee who meets the criteria set out above.
The semi bad news. If you receive the JRB, you must include the whole amount as income when calculating your taxable profits for Corporation Tax or Self-Assessment. But any individuals with employees who are not employed as part of a business, such as nannies or domestic staff, will not have to pay tax on grants received under the scheme.
The great news is that there is no limit on the number of employees who can be claimed for provided they meet the criteria above.
So, who can you claim for?
Employees and people who are not technically employees who fulfil roles such as office holders, company directors and agency workers.
Employers can also claim for employees who:
• Were furloughed and had a Job Retention Scheme claim submitted for them that meets all relevant eligibility criteria for the scheme.
• Have been continuously employed by the employer from the time of their most recent claim to the Job Retention Scheme for that employee until at least 31 January 2021.
• Have been paid a total of at least £1,560 (gross) throughout the tax months of 6 November to 5 December 2020, 6 December 2020 to 5 January 2021 and 6 January to 5 February 2021.
• Are not serving a contractual or statutory notice period, that started before 1 February 2021, including notice of retirement, for the employer making a claim.
What about the people who were excluded from the ‘first time furlough’ cutoff date?
The Original Furlough aspect of the Job Retention Scheme included a cut-off date on 10 June 2020 after which no employee could be furloughed for the first time. However, the Job Retention Bonus can be claimed by employers in relation to these employees whose furlough started after 10 June 2020 but only if they can prove that the employee meets all other criteria.
TEAM FLEX TOP 5 QUESTIONS
1. Are the rules different for fixed term employees or TUPED employees?
Team Flex have looked in to this and can confirm that Employers are able to claim the bonus for employees on fixed term contracts that are extended or renewed provided that continuity of employment is not broken and all other criteria are met.
Additionally, employers will be able to claim the JRB for employees who were transferred to them under TUPE law provided that the new employer furloughed the employee and successfully made a claim to the Job Retention Scheme for them. It is worth noting that claims for any employee transferred after 31 October 2020 will not be accepted.
2. What earnings count towards the minimum earnings limit?
Payments which have been recorded as taxable pay through Full Payment Submissions will count towards the minimum earnings threshold. Statutory payments e.g. Statutory Sick Pay will also count towards taxable pay.
3. When can I claim the bonus?
Claims can only be made between 15 February to 31 March 2021; after this date no further claims will be accepted.
4. What happens if HMRC are still checking my Job Retention Scheme claim- can I still make a claim?
You will still be able to make the claim for the Job Retention Bonus even if HMRC are in the process of checking your Job Retention Scheme claim but payment may be delayed until these checks are completed.
5. Can I claim the bonus if I have repaid Job Retention Scheme grants?
Unfortunately, if you have repaid all the amounts claimed you will not be able to claim the bonus. This applies regardless of the reason for the re-paying of the grants.
So how DO you make sure you are ready to claim?
Start by making certain that your staff records, and payroll is up to date. You will also need to be making sure that you are accurately reporting details and wages on the FPS through the Real Time Information reporting system for all staff members between 6 April 2020 and 5 February 2021.
Finally, if you get stuck pick up the phone and we will help you get ready! Call us on 01626 298968