Make An Enquiry
Get in touch

0121-633-2000

enquiries@friendpartnership.com

Job Retention Bonus

Friend Partnership’s Payroll Manager Amy Cowling summarises the Government Job Retention Bonus which was initially discussed back in July 2020:


  • The Government have now advised (regardless of employer size and sector) that all UK employers will be eligible for the Job Retention Bonus who previously made a claim under the Coronavirus Job Retention Scheme. The bonus is intended to provide additional support to employers who keep on their furloughed employees in meaningful employment after the Coronavirus Job Retention Scheme ends on 31st October 2020.


  • The bonus is a one-off payment to employers of £1,000 for every employee they previously claimed for under the Coronavirus Job Retention scheme, and who remain continuously employed through to 31st January 2021.


  • Eligible employees must earn at least on average £520 a month between 1st November 2020 and 31st January 2021. The employee does not have to be paid £520 every month, but their average earnings across the 3 months must be at least £1,560. They must also have received some earnings in each of the three calendar months. Further details on this is to yet to be published by HMRC.


  • Eligible employees must not be serving a contractual or statutory period of notice starting before 1st February 2021.


  • The claim for the bonus can be made after the January 2021 PAYE submission to HMRC and payment will be made by HMRC from February 2021. Further details on how to make the claim have not yet been confirmed.



  • HMRC have advised that the bonus will be taxable, therefore businesses must include the whole amount as income when calculating their taxable profits for Corporation Tax or Self-Assessment.


We will issue further guidance on this scheme once additional information has been published by the Government. I expect this to be in the late Autumn.

If you have any questions about the Job Retention Bonus please contact Amy Cowling, Payroll Manager at Friend Partnership Limited on 0121 633 2012 or at amy.cowling@friendllp.com

26 Mar, 2024
The upcoming changes will mean that from 1 October 2024, an estimated 132,000 businesses will be exempt from non-financial reporting requirements.
14 Mar, 2024
The UK's tax system for individuals classed as "not UK domiciled" (often called "non-doms") is undergoing a significant overhaul. This system has traditionally offered tax advantages for foreign income and gains, but those benefits are coming to an end. Non-domiciled individuals are generally those who haven't established strong ties to the UK in terms of residence or family connections. Previously, they enjoyed a tax perk known as the "remittance basis of taxation." This allowed them to avoid paying UK income tax on foreign income and capital gains, as long as the money remained outside the UK. However, these advantages have been gradually restricted in recent years. The new reforms, announced by the Chancellor of the Exchequer – Jeremy Hunt, represent a change to the existing non-dom tax system. The New System - What Does it Mean Non-Doms in the Future? Starting April 6th, 2025, a new system will be in effect. Here's what it entails for non-domiciled individuals who become UK resident after that date: Temporary Tax Exemption: If you haven't been a UK resident in the past 10 years and become one after the reform, you'll benefit from a temporary tax exemption. This means your foreign income and gains will be exempt from UK income tax for the first four years of your UK residency. Standard Taxation After Four Years: After the initial four-year grace period, your foreign income and gains will be taxed on the same basis as other UK residents. To avoid double taxation, relief will be available against UK tax under Double Tax treaties or the Unilateral system for any foreign tax already paid. What about Existing Non-Doms? The government acknowledges the complexities of transition for current non-dom who are UK residents. Transitional rules are being considered to ease the shift. These may include: Reduced Tax Rate for Bringing Foreign Income to UK: Existing non-doms might be offered an opportunity to bring previously untaxed foreign income and gains back to the UK at a reduced tax rate. Rebasing Foreign Assets for Capital Gains: There's also a possibility of "rebasing" the value of non-domiciled individuals' foreign assets for capital gains tax purposes. This could mean using the asset value in 2019 as a baseline, potentially reducing their future capital gains tax liability. Uncertainties and Taking Action The details of the new system and the transitional rules are still under development. The full picture will become clearer when the government publishes further consultations later in the year. Given the complexities involved, it's crucial for individuals who might be affected by these reforms to seek professional tax advice. Understanding the opportunities and potential pitfalls of the new system can help you make informed decisions about your financial future. While the non-dom tax reform simplifies matters to a certain extent, it introduces new considerations for individuals with international finances. Staying informed and seeking professional guidance will be key to navigating these changes effectively.
a poster for the spring budget 2024 national insurance changes
14 Mar, 2024
The cut in National Insurance effectively counterbalances income tax increases due to frozen personal allowances, specifically targeting working individuals.

Friend Partnership is a forward-thinking firm of Chartered Accountants, Business Advisers, Corporate Finance and Tax Specialists, based In The UK

Share this page:

Share by: