Government modifies the effect of the Coronavirus Job Retention Scheme to provide for new Job Retention Bonus

New Treasury Direction sets out legal framework for the new scheme that will pay employers £1,000 for each furloughed worker still employed at 31 January 2021

The government has issued a new Treasury Direction to modify the effect of the Coronavirus Job Retention Scheme to provide for the new Job Retention Bonus.

NB - the Job Retention Bonus was announced by the Chancellor in July 2020 and will pay employers a one-off bonus of £1,000 for each of their furloughed workers who is still employed at 31 January 2021.

Made under powers conferred by sections 71 and 76 of the Coronavirus Act 2020, the new Direction sets out the legal framework for the Job Retention Bonus, and that HMRC is responsible for the payment and management of amounts to be paid under the new scheme as set out in the Schedule to the Direction.

The Treasury Direction made under Sections 71 and 76 of the Coronavirus Act 2020 in relation to the Job Retention Bonus is available from gov.uk

In addition, the government has today published new guidance on claiming the Job Retention Bonus. For more information see New guidance on £9 billion Job Retention Bonus, set to benefit millions of businesses.