New Guidance issued on Furlough Scheme Bonus
HM Revenue & Customs have issued new guidance on how businesses will become eligible for the Coronavirus Job Retention Scheme Bonus of £1,000 for every employee previously furloughed and who remains continuously employed until the end of January 2021.
Eligible employees must have been paid in November, December and January, and must have had average earnings of at least £520 per month with a total of at least £1,560 over the three months.
Employers will be able to claim the bonus after they have filed PAYE information for January 2021, and the bonus will be paid from February 2021. HMRC has promised that detailed guidance, including how employers can claim the bonus online will be available by the end of September.
In order to claim the Job Retention Bonus, you must:
- ensure all employee records are up to date
- accurately report employees’ details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system
- make sure all of your CJRS claims have been accurately submitted and you have told us about any changes needed (for example if you’ve received too much or too little).
Reminder of the changes to the Coronavirus Job Retention Scheme from 1 August 2020
From 1 August 2020 the scheme will continue to provide grants for furloughed employees but no longer funds employers’ National Insurance and pensions contributions. Employers now have to make these payments from their own resources for all employees, whether furloughed or not.
From 1 September 2020, the grant wages will be further reduced to 70% then 60% from 1 October 2020. During these months you will be required to contribute towards the cost of your furloughed employees’ wages to ensure they continue to receive at least 80% of their wages for the time they’re on furlough.
If you should have any queries please do not hesitate to contact our payroll department who will be pleased to help.