Chancellor Rishi Sunak introduced a number of measures in the mini-budget on Wednesday 8th July 2020, offering up to £30bn in support to both companies and consumers.
Here is a summary with some key facts which we would like to share with you all:
In the biggest change announced, home buyers will be exempt from Stamp Duty Land Tax (SDLT) for the first £500,000 of any property price – up from £125,000. The increase will see an average saving of £4,500 for buyers and will run until the end of March 2021.
The 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. You can find out more on the government website.
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.
There 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 at any point and legitimately claimed for under the Coronavirus Job Retention Scheme
– have been continuously employed 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.
As part of the governments ‘Plan for Jobs’, unemployed people between the ages of 16-24 will be also able to apply for government-subsidised jobs, while registered employers will be able to offer six-month placements. For each employee that is employed under the Plan for Jobs scheme and works up to 25 hours per week, the Treasury will cover 100% of the National Minimum Wage.
Funds have been made available for businesses, too. Those that offer traineeships will also receive a £1,000 payment for every trainee, with a cap at 10 per company and for the next six months, the government will pay up to £2,000 for every new apprentice who is hired and is under the age of 25.
Homeowners are to receive vouchers worth up to £10,000 to make their houses more energy-efficient with improvements like new loft and wall insulation. The £3bn package will provide more than 100,000 jobs and will also see the creation of 5,000 new jobs under the Green Jobs Challenge Fund. You can find out more on Martin Lewis’s Money Saving Expert site.
For help with exploring how the changes could affect your business, please book a time to chat with us.