Job Retention Bonus - paying and qualifying for the bonus

Employment Tax

Under the Plan for Jobs in July, the Government launched the Job Retention Bonus (JRB) 

The JRB will provide employers with a bonus of £1,000 per employee for each employee who returns to work from furlough and who is paid each month and receives at least £1,560 (gross) between November 2020 and the end of January 2021.

More details are now available, including:

  • Employers will not be able to claim the JRB until 15 February 2021
  • Employers will be able to claim the bonus between 15 February 2021 and 31 March 2021, after which date the scheme will be closed with no further claims accepted.
  • The JRB will not have to be paid to the employee
  • You will still be able to claim the bonus  for employees claimed for through the Job Support Scheme
  • You will not be able to claim JRB for any employees for whom Coronavirus Job Retention Scheme (CJRS) claims were made if you subsequently repaid the CJRS payment.

Who can claim

Employers can claim JRB if they furloughed employees and made an eligible claim for them through the CJRS.

Employers can claim for employees for whom:

  • A valid claim was made under CJRS and:
    • who were continuously employed from the end of the claim period of their last CJRS claim for them, until 31 January 2021; and
    • are not serving a contractual or statutory notice period for the employer on 31 January 2021 (this includes people serving notice of retirement); and
    • you paid an amount in each relevant tax months and enough to meet the JRB minimum income threshold of a total of at least £1,560 (gross) throughout the tax months:
      • 6 November to 5 December 2020
      • 6 December 2020 to 5 January 2021     
      • 6 January to 5 February 2021

If HMRC are still checking an employer’s CJRS claims,  it will still be possible to claim JRB but payment may be delayed until those checks are completed.

HMRC will not pay the JRB if an employer made an incorrect CJRS claim and the employee was not eligible for the CJRS.

Where employees have been transferred to a new employer under TUPE or due to a change in business ownership, the new employer may still be able to claim JRB in respect of the new employees if:

  • TUPE rules applied; or
  • the PAYE business succession rules applied; or
  • the employees were associated with the transfer of a business from the liquidator of a company in compulsory liquidation where TUPE would have applied had the company not been in compulsory liquidation

For the JRB to be paid to an employer the employee must have been transferred to the new employer and have been the subject of a successful CJRS claim by the new employer.

This means that employers will not be able to claim the JRB for any employees who were transferred to them after the CJRS closes on 31 October 2020.

Download a copy of this latest update below or to find out how we can help your organisation with accessing the Job Retention Bonus, please contact:

Nigel Morris, 
Employment Tax Director

nigel.morris@mhllp.co.uk
Tel: 07718 340634
Richard Maitland, 
Employment Tax Partner

Richard.maitland@mhllp.co.uk 
Tel: 07711 373584
Stephanie Pote or Colin O’Kane, 
Senior HR Consultants

HRSolutions@mhllp.co.uk
The above guidance is provided for your information and is our summary of the latest position as we see it. You should seek appropriate legal and technical advice in relation to your own specific circumstances before acting on the above.
Please also note that Government advice is being updated on a daily basis.
If you are concerned about being impacted financially due to the Coronavirus, we are here to support you or if you require more specific advice on your situation and how the COVID-19 pandemic may affect your business. Visit our COVID-19 update here

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Focus on - Job Retention Bonus (JRB)



Employment Tax