Government Summer Statement – Further Coronavirus help for business and individuals
On 8th July the Chancellow announced some further help for businesses and individuals. Here is a summary.
Job Retention Bonus
The government will pay a one-off £1000 payment to employers for every furloughed employee retained to the end of January 2021
This is conditional on the employee earning over £520 per month
Six-month VAT cut for restaurants, hotels and attractions
VAT will be cut from 20% to 5% from 15 July to 12 January 2021 for selected areas. Theses are:
- Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered
- Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected
Stamp duty cut and ‘green homes grant’
The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000. This increase applies from 8 July until 31 March 2021.
This should mean that almost nine out of 10 transactions would be tax-free as a result
There will also be up to £5,000 per household for projects to make homes more energy efficient in England and the government will match owners or landlords’ spend, £2 for £1 for most homes
Discount on restaurant meals in August
The government will launch an “Eat out to help out” scheme which will offer a 50% discount for every diner, up to £10 a head, from Monday to Wednesday throughout August.
This will cover food and non-alcoholic drinks only and will apply at participating restaurants, pubs, cafes etc
The restaurant owners can claim the discount in full from the government via an online form and the money, once claimed should be in your bank account within 5 working days.
Support for young workers
The new “Kickstart scheme” will be put in place to fund six-month work placements for 16 to 24-year-olds on universal credit
These payments cover national minimum wage for 25 hours per week, plus national insurance and pension contributions for Great Britain
There will also be a £1,000 grant per trainee for employers who take on new trainees aged 16-24 in England and a £2,000 grant for employers per apprentice under 25 that is eventually hired. For those over 25 it will be £1,500 for six months starting 1 August (in England)
As has been common with these announcements, the full details will not be available until the end of July but if you need any help as to how these changes may affect you or your business please get in touch.