CIPP Payroll: need to know 2020-21

• Is not serving a contractual or statutory notice period on 31 January 2021 (this does also include people serving notice of retirement) • Was paid sufficient taxable pay in each relevant tax month from November through to end of January and enough to meet the JRB minimum income threshold

If HMRC are still checking a CJRS claims, you can still claim the JRB, however, payments may be delayed until all checks are completed.

HMRC will not pay the bonus if an employer made an incorrect CJRS claim and the employee was not eligible for the CJRS.

Employees who have been transferred under TUPE or due to a change in ownership

Employers may be eligible to claim the JRB for employees of a previous business which were transferred if:

• •

TUPE rules applied

PAYE business succession rules applied

• The employees were associated with the transfer of a business from the liquidator of a company in compulsory liquidation where TUPE would have applied if the company was not in compulsory liquidation

In order to claim the JRB for employees that have been transferred, employers must have furloughed and successfully claimed for them under the CJRS, as their new employer. The employees must also meet all the relevant eligibility criteria for the JRB.

This will mean that employers will not be able to claim the JRB for any employees who are transferred after the CJRS closes on 31 October 2020.

Claiming for an individual who is not an employee

Claims to the JRS for individuals who are not employees, such as office holders or agency workers can be made, as long as grant claimed under the Coronavirus Job Retention Scheme has been made and the other JRB eligibility criteria are met. To be eligible for the bonus employers must make sure that the employees being claimed for have been paid at least the minimum income threshold.

To meet the minimum income threshold, employers must pay the employee a total of at least £1,560 (gross) throughout the tax months:

• • •

6 November to 5 December 2020 6 December 2020 to 5 January 2021

6 January to 5 February 2021

Employers must pay their employee at least one payment of taxable earnings (of any amount) in each of the relevant tax months.

The minimum income threshold criteria apply regardless of:

How often an employee is paid

• Any circumstances that may have reduced an employee’s pay in the relevant tax periods, such as being on statutory leave or unpaid leave

HMRC will check that employees have been paid at least the minimum income threshold by checking information that is submitted through Full Payment Submissions via Real Time Information (RTI).

Only payments recorded as taxable pay will count towards the minimum income threshold. Taxable pay is reported to HMRC as a single figure through Full Payment Submissions via Real Time Information (RTI). Examples of taxable pay and the minimum income threshold can be found here

Claims for the bonus cannot be made until 15 February 2021. HMRC has advised that this guidance will be updated by the end of January 2021 with details on how to access the online claim service on GOV.UK.

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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