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Summer Economic Update

Lots of new bits of information out today, lots of new initiatives and some more confusing projects.


I have tried to break them down here for you to give you the main gist of what we know so far so here goes;


Job retention bonus

£1000 bonus payment to the Employer for each retained employee

For employers who have furloughed staff using the Coronavirus Job retention scheme (CJRS)

Employees must

· be earning at least £520 per month on average for November, December and January

· Have been furloughed at any point and legitimately claimed for under the CJRS

· Have been continuously employed up until at least January 2021

Able to claim from February 2021 once January Payroll submitted

More details to be released in the Autumn.

Eat out to Help Out Scheme

During August, diners can get 50% off Monday to Wednesday on sit-down meals and non-alcoholic drinks

Up to £10 per person

At participating restaurants, bars, cafes and other registered establishments.

Website to register will be open Monday 13th July 2020

Each week in August, businesses can then claim the money back with the funds in their bank account within five working days

VAT Reduction

This is the one that has made all bookkeepers and accountants brace themselves.

From 15th July until 12th January 2021 the VAT will be reduced to 5% for the following

· Eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol.

· All holiday accommodation in hotels, B&Bs, campsites and caravan sites

· Cinemas, theme parks and Zoos

Buying a new house?

Stamp Duty land tax threshold in England and Northern Ireland has been increased from £125,000 to £500,000 meaning No stamp duty tax is payable on a main home purchase up to this limit.

This was previously set at 2% of purchase price up to £250,000 and 5% up to £500,000

Plan for Jobs

Kickstart Scheme

Hundreds of thousands of fully subsidised jobs promised

For those aged 16-24, claiming universal credit and at risk of long term unemployment

Funding available to cover each Six month job placement

100% of the National Minimum wage for 25 hours a week will be funded

Employers are able to top this up.

Apprentices

Businesses will be given £2000 for each new apprentice they hire under the age of 25.

This is in addition to the existing £1,000 payment the government already provides for new 16-18 year old apprentices and those aged under 25 with an Education, Health and Care Plan.

Traineeships will be tripled in 2020-2021 as will Sector based work academy placements

Investment to double the number of work coaches (front-line DWP staff in Job centres)

Investment in the National Careers Service


So that's a quick round up of the information from Chancellor Rishi Sunak today, if you think you need any help or guidance initiating any of these within your business then don't hesitate to get in touch.


Louise Ball

Eleven Accounts Services

0161 501 0011

office@elevenaccounts.com


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Heaton Norris, Stockport SK4, UK

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