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Job Retention Bonus: further details

HMRC has published some further details of how the Job Retention Bonus Scheme will work for those employees who have been legitimately furloughed and remain continuously employed as at 31 January 2021.

The HMRC guidance states that all employers (including recruitment agencies and umbrella companies) can claim £1,000 for each employee legitimately furloughed provided:

  • they earn at least £520 a month on average between the 1 November 2020 and 31 January 2021 - as a three month average, the £520 does not have to be paid in each month but the employee must have received some earnings in each of the three calendar months (details of what counts towards the £520 will be published in September), and
  • they must not have been served statutory or contractual notice before 31 January 2021

New employers can also claim for employees who have TUPE’d before 31 October 2020 and who have been furloughed by their new employer, those returning from family leave or from being a military reservist after 10 June 2020 and who were then furloughed are also eligible, as well as those on fixed-term contracts provided they meet the other criteria.

Employers are warned to keep their payroll up to date and address all questions from HMRC about historical claims so as not to jeopardise their claim and must 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

The portal will be open for claims in February 2021.