HMRC has released guidance on who is eligible for the £1,000 per employee Job Retention Bonus.
In August 2020, the government has announced a payment to UK employers of £1,000 for each furloughed employee, under the Coronavirus Job Retention Scheme. This is for the employees who return to work, and continue with the business all through to the end of January 2021. Therefore, if your company lays off 50 staff, you would be eligible for `se- £50,000.
The lower-earning limits of the employees must be £520 per month between the end of October 2020 (when the furlough scheme ends), and the end of January 2021. The payment of the bonus will be made from February 2021. You will be able to claim the Job Retention Bonus from February 2021, through GOV.UK. website. HMRC will issue more statements on how to claim in due course but, this is most likely to be the process for claiming the furlough grants.
The government announced the scheme in a bid to get the economy moving again as the situation for businesses to become easy during the coronavirus lockdown.
Rishi Sunak told in the House of Commons: “Our message to business is clear: if you stand by your workers, we will stand by you.”
Employers can claim for the bonus scheme via an online claim portal from 15 February 2021 to 31 March 2021, when the scheme will close. They can claim for the bonus within this 6-week window. Employers must know, the bonus is taxable for Income Tax and Corporation Tax purposes.