COVID-19: Update on the Coronavirus Job Retention Scheme, including the Retention Bonus
16 July 2020 –
Earlier in the year the Govt. launched the Coronavirus Job Retention Scheme (CJRS) to support employers in retaining their employees through the COVID-19 pandemic. In May the Govt. announced an extension to the scheme until the end of October 2020. However, changes come into effect from the 1 August. Last week, the Chancellor announced the introduction of the Coronavirus Job Retention Bonus.
Updates on the Coronavirus Job Retention Scheme
Claiming for employees furloughed on or before 30 June – You need to claim by 31 July for employees furloughed through the Coronavirus Job Retention Scheme (CJRS) for periods ending on or before 30 June.
Get ready for changes from 1 August – You will no longer be able to use a CJRS grant to cover National Insurance (NI) and pension contributions for furloughed employees from 1 August. You can submit your August claim in advance, from 20 July.
Working out your claims – You can use HMRC’s online examples and calculator to help you work out what you can claim, for claims ending on or before 31 July. You can now also use these to help you work out claims ending on or before 31 August.
The online examples and calculator can be accessed HERE
Coronavirus Job Retention Bonus
This is a one-off payment of £1,000 to employers that have used the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remains continuously employed until 31 January 2021. The bonus will provide additional support to retain employees.
To be eligible, employees will need to:
- earn at least £520 per month (above the Lower Earnings Limit) on average for November, December and January
- have been furloughed by you at any point and legitimately claimed for under the Coronavirus Job Retention Scheme
- have been continuously employed by you up until at least 31 January 2021.
Employers will be able to claim the bonus from February 2021. More information about this scheme will be available by 31 July and full guidance will be published in the Autumn.
Webinars for additional information
Next week HMRC is hosting a programme of webinars for businesses wanting to understand the changes to the Coronavirus Job Retention Scheme from the beginning of August.
You can register for the free one hour webinars HERE