Job retention bonus policy paper published

Clarification of the job retention bonus has been published by HMRC. It confirms that the bonus will be taxable so businesses must include it as income when calculating taxable profits for corporation tax or self-assessment.

Announced as part of the summer economic update the bonus is a one-off payment of £1 000 to employers for every furloughed employee continuously employed through to the end of January 2021. Employers will be able to claim the bonus after they have filed PAYE for January 2021 and payments will be made to employers from February 2021.

Eligible employees must earn at least £520 a month on average between 1 November 2020 and 31 January 2021. Further employees who were furloughed and had a claim submitted for them after the 10 June 2020 (when the coronavirus job retention scheme closed to new entrants) because they were returning from...