The Coronavirus Job Retention Bonus (CJRB) was announced by Rishi Sunak in Parliament on 8th July 2020, with further details published on 31st July. In anticipation of the new information due to be released about the job retention scheme this September, we’ve summed up the key points you need to know so far:
What is the Coronavirus Job Retention Bonus?
- The CRB is a one-off payment of £1,000 which employers can claim in respect of each formerly furloughed employee who is still employed on 31st January 2021.
- The employee must be continuously employed from the last furlough (CJRS) claim to 1st February 2021.
- The average pay for November, December and January must be at least £520 (so £1,560 for the three months).
- There must be a payment to the employee on the RTI submissions for each of the months of November, December and January. Monthly payments can be less than £520, as long as the total for the three months is at least £1,560.
Who is eligible?
- Directors, office holders and employees on zero hours contracts are included as long as they meet the above conditions. Therefore, a quarterly paid office holder, or a zero hours employee who is not paid in one of the three months, will not qualify.
- A claim can’t be made in respect of an employee who has been given notice of redundancy before 1st February 2021.
- If a fixed term contract ends before 1st February, the employee can still be included in the claim if the contract is immediately renewed.
How can you make a claim?
- JRB claims can be made in February 2021, as soon as the January RTI submissions and PAYE payments have been made. All claims should be made on line through GOV.UK.
- HMRC can withhold JRB payments where they believe that a CJRS claim may be fraudulent or inflated.
- JRB payments must be included in the employer’s calculation of profits for Corporation Tax or Self-Assessment purposes.
- If the business has had a change of ownership, a claim can only be made if at least one CJRS claim has been made by the new owner.
- If employees have been transferred under TUPE, a claim can only be made if at least one CJRS claim has been made by the new employer.