As the original Job Retention Scheme ends, now may be the time for your business to look into future incentives such as the £1000 Job Retention Bonus and what the criteria will be for applicants.  

The scheme will open for application in February 2021 for employers who used the Job Retention Scheme and following bringing their workforce back, kept them on until 31 January 2021. It is a government incentive to help prevent mass redundancies following the original furlough scheme coming to an end.

Upon a successful application, your business will receive a one-off taxable payment of £1000 for each eligible employee that you furloughed and kept continuously employed until the end of January 2021. You will be able to apply until 31 March 2021.

Things to bear in mind:

You can only claim for employees who were eligible for the Job Retention Scheme following a successful application. If your business has been asked to return the money – you may not make this claim, similarly if your business used other means to subsidise your employees furlough pay. The employee you are claiming for also cannot be serving notice period in January 2021, this includes notice prior to a retirement.

There is a minimum threshold for eligible applications to claim the Job Retention Bonus. To meet the minimum income threshold, you must pay your employee a total of at least £1,560 (gross) throughout the tax months:

  • 6 November to 5 December 2020
  • 6 December 2020 to 5 January 2021
  • 6 January to 5 February 2021

How often you pay your wages is irrelevant in this case, providing that the total minimum is reached in each of those payment periods.

Before you can claim the bonus, you will need to have reported all payments made to your employee between 6 November 2020 and 5 February 2021 to HMRC through Full Payment Submissions via Real Time Information (RTI).

We are here to help you as our client and ensure you can continue to grow in these uncertain times. If you have any enquiries about your company’s payroll or accounts, please contact your Ivybridge Accountants Advisor now.