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.