Employers Guide to Coronavirus Job Retention Bonus

Posted on August 12, 2020

Details of the £1,000 bonus driven Coronavirus Job Retention Scheme (CJRS) for bringing staff back from furlough have been revealed by the Government.

All employers, including company directors, office holders, agencies and umbrella companies can take part in the scheme and from February next year a claim can be made for every eligible employee bosses bring back to work.

Staff must have been furloughed and must be employed continuously through to 31 January 2021 and must not be serving any notice period. In addition all eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021.

1. How much will employers be able to claim?

It will be a £1,000 one-off payment which is taxable, so the business must include the whole amount as income when calculating their taxable profits for Corporation Tax or Self-Assessment.

2. Employers should ensure that they have:

complied with their obligations to pay and file PAYE accurately and on time under the Real Time Information (RTI) reporting system for all employees
maintained enrolment for PAYE online
a UK bank account

3. What do employers need to do to make a claim?

Keep employee records up to date - including accurately reporting their employee’s details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system. They should then submit an accurate CJRS with any necessary amendments notified to HMRC.

Change of ownership, insolvency and/or liquidation

If a business has changed ownership or if insolvency and/or compulsory liquidation is relevant and TUPE regulations apply then in order to claim CJRS the transferred employees must have already been furloughed and successfully claimed for under the scheme by their new employer.

Paternity Leave

Returning from paternity leave is a little different and business owners can claim if the employee was furloughed after the June 10 CJRS cut-off date if they are returning from paternity leave.

“This spring and summer we have seen raft of legislation and help for businesses and keeping up to date with everything is a full-time job for business owners. No business owner welcomes redundancies and as always advice and help from employment lawyers can cut through to red tape and we can advise on specific business needs,” said Susan Mayall, Head of Employment at Pearson Solicitors.

For more advice and help on any aspects of employment law call Susan Mayall on 0161 785 3500 or email enquiries@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.