The government has published the guidance details of the one-off £1,000 taxable bonus from the Coronavirus Job Retention Scheme (for each eligible employee) that employers can claim if they have kept previously furloughed employees on their books to 31 January 2021 which is a three month period after the Coronavirus Job Retention Scheme closes on 31 October 2020.

Employers qualify to make a claim for the bonus payment if they furloughed their employees, made an eligible claim for them through the Coronavirus Job Retention Scheme and the employee was eligible for the Coronavirus Job Retention Scheme grant.

Employees qualify for the bonus if they were continuously employed from 1st November 2020 to 31st January 2021 and are not either on notice of redundancy or retirement.  In addition, the employer must have paid the claiming employee at least £1,560 over the three-month period.

Employers will have to claim the bonus between 15 February and 31 March 2021, but the guidance states that the employer is not required to pay this bonus to their staff.  Afterall, the Coronavirus Job Retention (furlough) Schemebonus was introduced by the government as an incentive payment for employers to keep their employees employed for at least three months after the Coronavirus Job Retention Scheme ends.

Prior to claiming the bonus, the employer will need to have reported all payments made to the eligible employees between 6 November 2020 and 5 February 2021 to HM Revenue & Customs through full payment submissions via Real Time Information.

Employers who have reimbursed HM Revenue & Customs money they had previously claimed under the Coronavirus Job Retention Scheme are not eligible to make a claim for the bonus. However, employers who adopt the new Job Support Scheme will be able to claim the bonus.

If you would like to discuss this topic in more detail or would like more information, contact Ramshaw HR today.

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