Rishi Sunak has made promises in a lot of areas, will you benefit from them?

Published: 14 Jul - 2020 by Ben Rendle

Here's what you need to know about all the scheme changes and business vat changes happening now.

Since the announcement by Rishi Sunak for his second phase of his "Plan To Build" the economy, here are the  key changes, although they are not that generous for the self employed or those who fell through the Covid Help Schemes as previously mentioned, there are a few VAT changes and the bonus of a pizza or Indian on Boris! Or should we say, tax payer, as no doubt this extra funding and tax cuts have got to come from somewhere after all.

JOBS 

FURLOUGH SCHEME - This will definitely end in October 2020.

JOB RETENTION BONUS - This is a one-off payment of £1,000 to employers that have used the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remains continuously employed until 31 January 2021. The bonus will provide additional support to retain employees.

To be eligible, employees will need to:

  • earn at least £520 per month (above the Lower Earnings Limit) on average for November, December and January
  • have been furloughed by you at any point and legitimately claimed for under the Coronavirus Job Retention Scheme (CJRS)
  • have been continuously employed by you up until at least 31 January 2021.

Employers will be able to claim the bonus from February 2021 once accurate RTI data to 31 January has been received. More information about this scheme will be available by 31 July and full guidance will be published in the Autumn.

IMPORTANT NOTE: From August 1st 2020, You will no longer be able to use a CJRS grant to cover National Insurance (NI) and pension contributions for furloughed employees from 1 August. You can submit your August claim in advance, from 20 July.  If you need help with your claim, don't wait until it's too late, get in touch with us.

CORONAVIRUS TESTING - If you're required to be tested by your employer for Covid19, this will NOT be treated as a "Benefit" as previously announced, which is good news. For full guidance on employers and employee testing within the work place see the governments test and trace system.

KICKSTART - Begins in August for new jobs given to 16-24 yr olds who are at risk of long term unemployment. Applies to new jobs only and must work min 25 hrs per week, on at least min wage with training and support. The government will support the first 6 months salary and overheads (approx £6.5k) Further scheme details will be released here.

APPRENTICESHIPS - Employers will receive £2000 to create new apprenticeships and a new bonus of £1500 for apprentices age 25+ for further details on the scheme visit GOV.UK.

HOMES

STAMP DUTY -  The Stamp Duty Land Tax (SDLT) threshold in England and Northern Ireland will increase the threshold under which no SDLT is paid on the purchase of a main home from £125,000 to £500,000, with immediate effect until 31 March 2021.  This does not apply to second or investment homes that are not a primary residence.

GREEN HOME GRANT - The Green Deal energy saving grant Households and landlords will be helped with a voucher up to £5k for 2/3 of costs for green upgrades (insulation, double glazing, solar panels etc) or all of the amount for low income households.

SOCIALLY 

EAT OUT VOUCHER - For August only, everyone will receive a voucher to eat out up to the value of £10 per person, which the business will then reclaim back form the government. Valid Mon-Wed only.  The Eat Out to Help Out Scheme is valid on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes and other establishments that have registered.  Always check prior to ordering that the restaurant is participating in the scheme. If you own or run a restaurant, cafe or pub, including hotels, register now for the scheme and take advantage of the additional new visitors this may bring.  You can find further details about the scheme here.

VAT REDUCTION - from 15 July until 12 January 2021, the UK government will cut VAT from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol. This VAT reduction also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites, as well as attractions like cinemas, theme parks and zoos.

So there you have it, the plan to build the economy following the lock-down.  If you're unsure how to manage your business financially over the next few months, why not get in touch, we can look over your accounts and guide you through the schemes that will benefit you the most, and help you understand your accounts to plan for a better future.

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