HMRC have released further information about the Government’s Coronavirus Job Retention Scheme bonus, which was announced by Chancellor Rishi Sunak in the recent Summer Statement / Budget to incentivise businesses to bring their employees back from furlough.
The details announced include advice on how businesses can check if they’re eligible to receive the bonus, and how they should prepare for their claim. The full Government guidance can be found here.
About the bonus
Employers will be able to claim a one-off payment of £1,000 for each employee they have previously furloughed and received a grant for under the Coronavirus Job Retention Scheme (CJRS) and who remains in continuous employment through to the end of January 2021.
To be eligible to claim, the employee must have received earnings in November 2020, December 2020 and January 2021 (after the furlough scheme ends in October 2020) and must have been paid an average of at least £520 per month, and a total of at least £1,560 across the three months.
Employers will be able to claim this bonus after they have filed PAYE information for January 2021, with the bonus then being paid from February 2021. More detailed guidance, including how you can claim the bonus online, is expected to become available by the end of September.
If you intend to make a claim for the bonus, you must:
– ensure all employee records are up to date;
– accurately report employees’ details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system;
– if you are a director on an annual payroll, consider whether you need to switch to a monthly payroll to meet the above criteria; and
– make sure all of your CJRS claims have been accurately submitted and you have informed HMRC about any changes needed (for example if you’ve received too much or too little).
An important reminder…
As a reminder, HMRC is clawing back any incorrectly claimed grants (both relating to CJRS and other support schemes offered throughout the COVID-19 pandemic), with potential penalties being issued to businesses who don’t notify HMRC of any claims made that they were not entitled to and return the payment.
Please read our recent blog here to familiarise yourself with the rules, the current amnesty period and how you can ensure compliance to avoid a large penalty.
Please note – HMRC have recently confirmed that businesses who have over-claimed can notify HMRC when making their next online claim for financial support. The system will prompt you to do this, so please consider whether this could apply to your business when claiming your next CJRS grant or the CJRS bonus.
Here to help
For advice on the CJRS bonus, other Government support or funding options available, our team are on hand to help. Please get in touch with us on 01254 679131 or via email at firstname.lastname@example.org.
This information is correct as of 20 August 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.