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As part of his ‘Plan for Jobs’ Chancellor Rishi Sunak announced the Job Retention Bonus. This will see employers receive a £1,000 bonus for each employee that they bring back from furlough and continually employ from the end of the CJRS on 31st October to 31st January 2021.
Today (31st July), the government released further information relating to the scheme and committed to providing full guidance by September 2020. You can read the full policy paper here.
The policy paper confirms that an employer will be able to claim the Job Retention Bonus for any employees eligible for the Coronavirus Job Retention Scheme that they have claimed a grant for. The paper goes on to state that employers can claim the Job Retention Bonus for all employees who meet the below criteria, including company directors.
At this point it appears that directors of Personal Service Companies who placed themselves on furlough due to the economic impacts of Coronavirus will be able to make a claim for the £1,000 bonus provided they meet the following eligibility criteria.
You will be able to make a claim for yourself and any other employees of your business that:
It is important to note that this is a taxable grant. Should you be eligible for the Job Retention Bonus the £1,000 will be included as income and subject to corporation tax.
We do not yet have the guidance that will give us certainty as to how the scheme will operate, this is due in September 2020 and we will update our clients as soon as we have this. You are not able to make a claim for a Job Retention Bonus until February 2021 at the earliest, so for now there is no action needed.
Appointing an accountant can save you time and stress when starting up on your own. If you would like to speak to someone about any of the above information or any other queries you may have, arrange a callback and a member of the team will be in touch.