The Chancellor‘s ‘Plan for Jobs’ to help the UK’s recovery
The coronavirus pandemic has had a massive impact on the UK economy. To mitigate its effect, the Government has had to think fast and respond quickly. This has created a fast-paced and constantly evolving landscape for businesses to operate in. The Chancellor, Rishi Sunak has announced various schemes to ease unemployment that many businesses will find of interest.
Job Retention Bonus
As part of his Summer Economic Update, the Chancellor has announced a Job Retention Bonus. The bonus aims to incentivise employers to not only bring furloughed staff back to work, but to keep them employed.
The Coronavirus Job Retention Scheme (CJRS) is set to end on the on 31st October 2020. But for each furloughed employee that is brought back to work, the Government will pay a bonus of £1,000.
To qualify, the employee must then be continuously employed by that employer until 31 January 2021. The employee must be paid at least £520 per month on average between 1 November 2020 and 31 January 2021. And they must not be under a notice of termination on 31 January 2021.
The employer must have made claims for the employee under the CJRS. And the employer’s Real-Time Information (RTI) records must be up to date.
Which employers can claim the Job Retention Bonus?
All employers are eligible for the scheme. To claim the bonus, the employee must have been furloughed and the employer must have claimed under the CJRS.
In order to claim the bonus, employers must keep their payroll returns up to date and they must be accurate. The claim is likely to be jeopardised if this is not the case. HMRC may request information about claims which an employer has already submitted under the CJRS.
If HMRC believes there is a risk that any CJRS claim has been made fraudulently, an enquiry will be raised. Payment of the bonus will be withheld until the enquiry is completed.
How will you claim?
The Government has yet to publish the mechanism for claiming the Bonus. However, payments will be made to employers in February 2021. But only once the employer has submitted their Real-Time Information data up to 31 January 2021 to HMRC.
The Government is also planning to launch a new Kickstart Scheme. The £2 billion scheme will look to create new, fully subsidised jobs for young people aged between 16-24.
Funding will be available for each six-month job placement. It will meet 100% of the cost of the National Minimum Wage for 25 hours a week. This will equate to approximately £6,000 for the six-month placement. The scheme is aimed at young people who are claiming Universal Credit and are at risk of long-term unemployment.
Employers will be able to top up wages above the minimum wage reimbursed by the Government. There will also be no cap on the number of places available under the scheme.
A further £1.6 billion will be invested in scaling up employment support schemes, training and apprenticeships. Young people, who are amongst the worst hit by the crisis, will benefit from this.
In addition to existing schemes, the Government plans to boost employment by giving businesses £2,000 for each new apprentice they hire under the age of 25. It is also hoped that over a quarter of a million more young people will benefit from an extra £32 million investment in the National Careers Service.
How can Vital Statistics help?
As chartered accountants and business advisors, we are always looking to help our clients. By keeping abreast of what Government schemes are available, we can advise our clients on the best course of action. To see if we can help your business why not call us today on 01403 753554 or send us a message.
Job Retention Bonus: https://www.gov.uk/government/publications/job-retention-bonus/job-retention-bonus