Further details of how jobs will be protected through the government’s new Job Retention Bonus (JRB) scheme have been unveiled by HMRC.

Please note in particular points 5 and 6 which may jeopardise any claim that can be made if not complied with.

1. The Job Retention Bonus (JRB) is a one-off payment to Employers of £1,000 for every employee who they previously furloughed that remains continually employed through to 31 January 2021.

2. The period of furlough leave for the respective employee needs only to be the minimum of 3 weeks that were required to make a claim under the Coronavirus Job Retention Scheme (CJRS).

3. Eligible employees are those that earn at least £520 a month on average based on their pay between 1 November 2020 and 31 January 2021 (a total of at least £1,560 across the 3 months).

4. Employees must receive earnings in each of the 3 calendar months from November 2020 to January 2021.

5. Employers should ensure that they have complied with their obligations to pay and file PAYE accurately and on time under the RTI reporting system.

6. Employers must keep their payroll up to date and address all requests from HMRC to provide missing employee data in respect of historic CJRS claims.  Failure to do so may jeopardise the employers claim.

7. Employees include office holders, company directors and agency workers, including those employed by umbrella companies.

8. The Job Retention Bonus will be taxable therefore the business must include the whole amount as income when calculating its profits for corporation tax or self-assessment.

9. The claim will be able to be made in February 2021 after the PAYE has been submitted for January 2021 under RTI.

10. Further details surrounding how the JRB can be claimed will be released by the end of September 2020.

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

Lambert Chapman Chartered Accountants

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