The Job Retention Bonus

Following yesterday’s announcement, Paul Clarke, Director – UK Business Mentoring has highlighted the details behind the Job Retention Bonus.

The details are as follows:-

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 once accurate RTI data to 31‌‌‌ ‌January has been received. More information about this scheme will be available by 31‌‌‌ ‌July and full guidance will be published in the Autumn.

Updates on CJRS scheme

Please be aware of some key dates on the CJRS scheme that might affect you:

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.

Apprentices

• Businesses will be given £2,000 for each new apprentice they hire under the age of 25. This is in addition to the existing £1,000 payment the Government already provides for new 16-18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan.

VAT Reduction

• VAT reduction – from 15‌‌‌ ‌July until 12‌‌‌ ‌January 2021, the UK government will cut VAT from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol. This VAT reduction also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites, as well as attractions like cinemas, theme parks and zoos