Job Retention Bonus
Part of the government’s Plan for Jobs is a one-off payment to employers of £1,000 for every employee whom they had previously furloughed. There are certain eligibility criteria in order to be able to claim. The employee must remain continuously employed through to 31 January 2021 and the employee must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021. The £1,000 bonus will be paid to employers in February 2021 after they have filed their PAYE for January through the Real Time Information reporting system. It is important that the employer keeps accurate employee records in respect of Coronavirus Job Retention Scheme claims as these might be requested by HMRC.
New business owners might be able to claim for employees of the previous business if TUPE applies or the PAYE business succession rules apply to the change of ownership. That would be the case even if the transfer of the business is from a liquidator of the company, if TUPE would have applied were it not for the company being in compulsory liquidation. In order to claim under these circumstances the transferred employees must have been transferred prior to 31 October 2020.
What should you do
Employers should make sure that employee records are accurate, including reporting their employee’s details and wages on the Full Payment Submission through the Real Time Information reporting system. Also, you should ensure all Coronavirus Job Retention Scheme claims in relation to your employees have been accurately submitted to HMRC.
If you want to discuss further with us please feel free to contact us.