Yesterday, the Chancellor announced the introduction of the Job Retention Bonus (“JRB”).
The JRB will come into effect as the Coronavirus Job Retention Scheme (CJRS) ends on 31 October 2020, with the aim of encouraging employers to continue employing staff who have been furloughed.
What do we know about this new scheme?
- The bonus is a one-off payment to employers who have used the CJRS;
- £1,000 will be paid to the employer in respect of each furloughed employee who remains continuously employed until 31 January 2021.
To be eligible, employees will need to fulfil all three of the following conditions:
- They must earn at least £520 per month (on average) in November 2020, December 2020 and January 2021;
- They must have been furloughed by the employer at any point through to 31 October 2020 (and legitimately claimed for under the CJRS); and
- They must be continuously employed until at least 31 January 2021.
When can the £1,000 be claimed?
Employers will be able to claim the bonus from February 2021, once the business has made its RTI data submission(s) to 31 January.
We are expecting more information about this scheme to be available by the end of July, with full guidance being made available in the autumn.
FURTHER UPDATES ON THE CJRS
We would also like to remind you of some key dates and changes to the CJRS that might affect you between now and the end of the scheme:
Furlough period up to 30 June
You need to ensure that a CJRS claim is made by 31 July for employees furloughed for periods ending on or before 30 June.
Changes from 1 August
- From 1 August, employers will pay employer’s national insurance and auto-enrolment pension contributions for furloughed employees;
- From 1 September, employers will pay 10% of furlough salary, with the government contributing 70% (up to a cap of £2,187.50);
- From 1 October, employers will pay 20% of furlough salary, with the government contributing 60% (up to a cap of £1,875).
You can submit your August claim in advance from 20 July.
Calls from HMRC to customers
HMRC are now contacting selected employers to discuss their claims. We understand that these calls will be to check that the business hasn’t made any mistakes in its claims and to make sure the business is claiming the correct amount.
If you need any help or support relating to the CJRS, JRB or any other aspect of the government announcement, please speak with your regular RG contact.