£1000 Job Retention Bonus – Now Cancelled

Following the Chancellors November announcement to extend the furlough scheme the Job Retention Bonus has been withdrawn until further notice. Our original guidance can be found below which is now out of date.

As more details emerge about this scheme, we can now confirm that Domestic Employers will not be excluded.  This scheme is designed to avoid cliff edge redundancies in October and is open to employers who have previously claimed for an employee under the CJRS (furlough).  In a nutshell it encourages employers to bring staff back from furlough and employ them in a meaningful way until at least the end of January 2021.

We have linked to HMRC guidance on the scheme here:

Full Guidance - https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/923783/SIGNED_CJRS_DIRECTION_No_4__Coronavirus_Job_Retention_Scheme_Bonus__Final.pdf

Simple Guidance -

https://www.gov.uk/guidance/check-if-you-can-claim-the-job-retention-bonus-from-15-february-2021

This scheme can be used in conjunction with the new Job Support Scheme assuming Domestic Employer eligibility. The £1000 claim must be made between 15th February 2021 – 31st March 2021.  The exact process on how to claim should be released by late January 2021.

Key Facts:

  • A payment of £1000 can be claimed for each employee previously successfully claimed for under the CJRS.
  • This is a bonus to the employer and does not have to be passed to your employee.
  • To make the claim the employee must be paid a taxable amount every month from October to January and must not have been given notice.
  • These amounts must average at least £520 per month. E.g you can pay £100 in a single month so long as the average is £520 BUT you cannot have a month with zero pay.
  • We expect a requirement for all RTI to be submitted on time and all of your PAYE payments to be up to date. Please ensure you allow NannyPaye time to process any late requests and keep your subscription maintained to avoid gaps in your declaration.
  • You must keep your employee continually employed over this period and any notice period cannot start before 01/02/2021.
  • The claim is quoted as taxable but domestic employers have been excluded from this so the payment will be tax free like the CJRS grant.