HMRC performance in 2019-20

We asked HMRC whether the Coronavirus Job Retention Bonus scheme had been cancelled or just...

We asked HMRC whether the Coronavirus Job Retention Bonus scheme had been cancelled or just delayed.26 The scheme would have granted a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Coronavirus Job Retention Scheme and who remained continuously employed through to 31 … Read more We asked HMRC whether the Coronavirus Job Retention Bonus scheme had been cancelled or just delayed.26 The scheme would have granted a one-off payment to employers of £1,000 for every employee who they previously claimed for under the Coronavirus Job Retention Scheme and who remained continuously employed through to 31 January 2021. The OBR had estimated the scheme would cost £6.1 billion. This was lower than HM Treasury’s estimated cost of up to £9.4 billion because the latter estimate represented a maximum rather than a central estimate, so the figures are not directly comparable.27 HMRC told us that, as the CJRS measure was originally planned to stop at the end of October, the bonus scheme was meant to have then provided an incentive for employers to keep people on their payrolls. But because the CJRS measure had now been extended to 31 March, the Chancellor announced there was no need for the incentive of a bonus payment in January.28 HMRC recognised our concerns about businesses’ ability to meet their tax liabilities without any payment from the bonus scheme but reiterated the reasons the scheme was no longer proceeding. HMRC explained that there has been no announcement about the arrangements that will be in place once the CJRS measure has expired.29 HMRC subsequently told us that, as the original purpose of the Job Retention Bonus had fallen away with the extension of the CJRS scheme, the Government had announced on 5 November 2020 that the Job Retention Bonus would not be paid in February 2021 and that it would redeploy a retention incentive at the appropriate time.30 26 Qq 38–39 27 Letter dated 3 December from HMRC Permanent Secretary to Chair; C&AG’s Report, Figure 10 28 Q 38 29 Qq 38–40 30 Letter dated 3 December from HMRC Permanent Secretary to Chair 12 HMRC performance 2019–20 2 The impact of COVID-19 on HMRC’s operations HMRC’s estate strategy Show less