Job Retention Bonus

legal updates

We now have a detailed government guide and a dedicated Treasury direction, which set out the full provisions and eligibility criteria.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Back in July 2020 the government announced, you may still remember, that for every employee who was on furlough at some point and kept in continuous employment until the end of January 2021, a bonus of £1,000 would be paid.

We now have a detailed government guide and a dedicated Treasury direction, which set out the full provisions and eligibility criteria. The only part still missing is how to make a claim, this will be added by the end of January 2021, closer to the claim period opening date.

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

Employers will be able to claim the bonus between 15 February 2021 and 31 March 2021. No claim can be submitted after the claim period ends.

The bonus amount of £1,000 has been confirmed. Importantly, the guidance suggests that the bonus does not have to be passed to the employee and may be used for other purposes of your business. The bonus will count as taxable income.

To qualify to claim the bonus, the employer must:

  • Still be enrolled for PAYE online when the claim for the bonus is made;
  • Comply with PAYE obligations to file PAYE accurately and on time reporting for all employees between 6 April 2020 and 5 February 2021, not just in respect of those employees for whom the bonus is claimed;
  • Keep payroll up to date and make sure the leaving date for any employee who stops working is reported before the end of the pay period in which this employee leaves;
  • Use the irregular payment pattern indicator in Real Time Information (RTI) for any employees not being paid regularly;
  • Comply with all requests from the HMRC to provide any employee data for past Coronavirus Job Retention Scheme claims.

The bonus may be claimed for each employee who meets these criteria:

  • For this employee an eligible claim was made under the Coronavirus Job Retention Scheme. This means that the employee had to be on furlough, including the flexible furlough, for any duration as long as a valid claim for the furlough grant was made. This also means that if the claim for furlough was found to be invalid or withdrawn in full, the bonus for this employee cannot be claimed;
  • The employee must be employed continuously from the end of the last furlough claim period until 31 January 2021 and not be serving notice terminating employment on the latter date;
  • Eligible employee must satisfy the minimum payment requirements:
    – The employer must make a taxable payment to this employee in each of these three periods: 6 November to 5 December 2020; 6 December 2020 to 5 January 2021; 6 January to 5 February 2021;
    – For the whole period from 6 November 2020 to 5 February 2021 the qualifying employee must be paid in total at least £1,560.

The government guide has a link to examples illustrating the minimum payment requirements.

Company officers count as employees for the purposes of the job retention bonus.

A claim under the new Job Support Scheme will not invalidate the bonus entitlement.

DMS NavigatorDealer Management System software for Car Sales, Aftersales and eCommerce

Our dealers use us to help them be more Efficient and Profitable!

You can use our Dealer and Lead Management software to integrate all dealership departments, both online and physical ; providing all in-house functions; Invoicing, Stock Management, Accounting and Marketing as well as interfacing for advertising, ecommerce and more.

Kiril MoskovchukTrainee SolicitorRead More by this author

Related Legal Updates

Pandemic impact on annual leave entitlement

The change in March 2020 allowed for four weeks of annual leave to be carried over. So, as a reminder, any carried over leave must be used in 2022!

See you in court… in a year or so…

Before deciding to issue or defend proceedings, it is important to consider how court delays may impact you as a business and as an individual.

End of COVID-19 restrictions – Employment implications

Until 24 March 2022, Statutory Sick Pay (SSP) will continue to be available to employees who self-isolate.

A word of caution – Dismissal of an anti-vaccination employee ruled to be fair

Does this decision lend grounds for employers to dismiss staff refusing a COVID-19 vaccine at present?

COVID-19 and the workplace

We have provided a list of answers to some frequently asked questions regarding COVID-19 and the workplace.

Goodbye 2021, hello 2022!

Despite an excess of 100 different commission claims hitting the Lawgistics’ desks, not one single dealer has had to part with their money.

Key worker claim dismissed

They presented witness statements from family members to back their claims of various things our client was supposed to have said.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.