NITA have created an overview of the updated developments on the following;
New Job Retention Bonus
The new guidance sets out the information employers, who have furloughed employees, need to know in order to claim the bonus. The Job Retention Bonus is a £1,000 one-off taxable payment to employers for each eligible employee that they furloughed and kept continuously employed until 31 January 2021.
The bonus will work alongside the Job Support Scheme. The bonus will be able to be claimed between 15 February 2021 and 31 March 2021, employers do not have to pay the bonus to their employees.
Who can claim?
• Employers can claim the bonus if they have furloughed employees and made an eligible claim for them through the Coronavirus Job Retention Scheme. Employees must have been eligible for the Coronavirus Job Retention Scheme grant for employers to be eligible for the bonus.
• Employers can still claim the bonus if they make a claim for that employee through the Job Support Scheme. Guidance on the Job Support Scheme will be published soon. However, to be eligible for the bonus you must pay your employee 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
For more information click here
New Job Support Scheme
To be eligible, an employee must work at least 33% of their normal hours. For the other two thirds of the hours, the Government will pay a third and the employer will pay a third, so in total, an employee will receive 77% of the full pay (ie, the government will be paying 22.5% of wages)
• The scheme will run from six months from 1st November
• Large businesses will have to prove that they’ve been adversely affected by Covid to be eligible for the Job Support Scheme.
• The scheme will be available to all businesses and all employees, regardless of whether they have been part of the CJRS in the past.
Click here to view the fact sheet for the Job Support Scheme.
Job Support Scheme Extension
The Chancellor has announced that the Job Support Scheme will be expanded to support firms across the UK who are required to close their premises due to Covid Restrictions.
Under the expansion, firms whose premises are legally required to shut for some period over winter as part of local or national restrictions will receive grants to pay the wages of staff who cannot work.
The government will support eligible businesses by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month. Under the scheme, employers will not be required to contribute towards wages and only asked to cover NICS and pension contributions, a very small proportion of overall employment costs. It is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so face no employer contribution.
Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.
The scheme will begin on 1 November and will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December. Employees of firms that have been legally closed in the period before 1 November are eligible for the CJRS,
Click here to view the fact sheet for the Job Support Scheme Extension.
Claim for wages through the Coronavirus Job Retention Scheme
Claim for some of your employee’s wages if you have put them on furlough or flexible furlough because of coronavirus (COVID-19).
The 30 November 2020 is the last day you can submit claims for periods ending on or before 31 October 2020. After this date you will not be able to submit any further claims or add to existing claims.
Find out more information here
If you have any further queries on any of the above please get in touch with by emailing email@example.com for more information.