Chancellor’s Summer Statement 2020

The UK Chancellor has announced a jobs retention bonus to bring back furloughed workers, a cut to VAT for the hospitality sector, and an increase in the SDLT threshold as the main headlines from the Chancellor’s Summer Statement. These are outlined as follows:
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• The Job Retention Bonus 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. 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 and claimed for under the Coronavirus Job Retention Scheme & have been continuously employed 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. The details of the scheme will be important, as employers will have to consider whether there is sufficient trade & demand to justify paying at least £1,560 to retain an employee to obtain this bonus. More information about this scheme will be available by 31‌‌‌ ‌July and full guidance will be published in the Autumn.
• Eat Out to Help Out Scheme – during August, diners can get 50% off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes and other establishments that have registered. Eligible businesses will need to register via a new online portal which is to be released on Monday 13th July 2020 to be reimbursed for the discount.
• 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. Full guidance on this point will be issued by HMRC in the coming days.
• Increase in the Stamp Duty Land Tax (SDLT) threshold in England and Northern Ireland – increasing 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.
• Green Homes Grant - From September, homeowners and landlords in England will be able to apply for vouchers to make their homes more energy efficient. Grants will cover at least 2/3rds of the cost up to £5,000 & lower income households will see Government cover the full cost up to £10,000. Under devolved Government rules Stormont will make an announcement on whether any similar scheme will be made available for Northern Ireland.
• Apprenticeship Funding for England has been announced in the form of a payment of £2,000 to employers for new apprentices hired aged under 25, and a £1,500 payment for new apprentices aged 25 and over from 1st August 2020 to 31st January 2021. These are in addition to the £1,000 payments that already exist for 16-18 year old apprentices, and those aged under 25. Under devolved Government rules Stormont will make an announcement on whether any similar scheme will be made available for Northern Ireland.
  
• Kick Start Scheme – This is a new scheme starting in August in Great Britain aimed at those aged between 16-24 who are on Universal Credits & will reimburse 100% of the costs to the employer to include employer’s National Insurance Contributions plus employer’s auto enrolment contributions for six months. This support is for new jobs offering a minimum of 25 hours per week paid at least at national minimum wage.
  

If you have any queries on any of the above points please do not hesitate to contact us at [email protected] or on 07742364397.