What is the job retention scheme bonus?
Posted on 20th August 2020 at 20:46
2020 has, so far, been an absolute disaster in almost every way possible. The coronavirus pandemic has affected almost every industry in the UK and globally - and it's arguable that the self-employed and small businesses have suffered the most.
As most people have now been able to return to work with safety measures in place, some industries are starting to pick up again. In hospitality we have the Eat Out to Help Out scheme for example, which has proven extremely popular the past couple of weeks. However, we are still seeing many companies suffering.
Now, the government has announced that employers will be eligible for a £1000 grant per employee they’ve previously claimed for under the Coronavirus Job Retention Scheme, as long as said employees have remained continuously employed through to 31 January 2021.
The Coronavirus Job Retention Scheme ends on 31 October 2020, so this new grant has been introduced as a way to support employers who decide to keep on their furloughed employees beyond the end of the scheme.
How does it work?
At present, the full details have not been released, and we are expect to know more in September. Here's what we know so far about eligibility and applying:
To be eligible, employees must be earning an average of at least £520 per month between 1 November 2020 and 31 January 2021
Employers will only be able to claim for this bonus after they have filed PAYE for January 2021
If a CJRS claim was incorrectly made for an employee, the £1000 grant will not be available to them
All employers are eligible to claim for the scheme, including umbrella companies and recruitment companies
If an employer has employees who have been transferred under TUPE or because of a change in ownership, they may still be able to claim under the scheme
An employer can claim for employees who have up to date RTI records for the period to the end of January 2021
Employees included in the eligibility criteria include office holders, company directors and agency workers
The team at Effective Accounting will be more than happy to help all eligible clients to apply for the grant next year. For now, you do not have to do anything.
Do you need coronavirus-related support for your business?
Nicola J Sorrell -
Founder | Xero Champion | IR35 Expert
Tagged as: Coronavirus
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