Inca COVID-19 Update: Chancellor Announces £30bn Plan to Save UK Jobs
9th July 2020
Welcome to our latest COVID-19 update.
Welcome to our latest COVID-19 update. We hope you and your family are keeping safe as we ease out of lockdown.
Chancellor Announces £30bn Plan to Save UK Jobs
The Chancellor has given details of the second part of the government’s three-phase plan to protect the UK economy from the impact of coronavirus. He has unveiled a range of initiatives designed to encourage employers to retain and recruit staff, to boost the housing market, and to help stimulate the recovery of the food and hospitality sector.
Here are the main headlines:
Job Retention Bonus
Businesses bringing furloughed staff back to work will receive a one-off payment of £1K for each employee who is still in employment as of 31st January 2021. The scheme applies to employees earning over £520 per month.
To help get young people into the workplace, the Kickstart scheme will fund the first six months of work placements for 16-24-year olds on universal credit. Payments cover the national minimum wage for 25 hours per week.
Eat Out to Help Out Voucher Scheme
Restaurants, pubs and cafes can register to participate in the Eat Out to Help Out scheme. Every person in the UK will receive a voucher giving them a 50% discount (per diner) on food and non-alcoholic drinks – up to £10 a head. The scheme will run from Monday to Wednesday throughout August
Stamp Duty Reduction
From 8th July until 31st March 2021, the threshold for stamp duty on residential property in England and Northern Ireland will rise from £125K to £500K.
VAT Reduction on Food & Hospitality
For a six month period from 15th July 2020 to 12th January 2021, VAT will be reduced from 20% to 5% on selected areas. These will include food and non-alcoholic drinks in restaurants, pubs and cafes, hot takeaway food, accommodation in hotels and B&B’s and admission to attractions such as theme parks and cinemas.
Are You Affected by the VAT Reduction? Update Your Accounting System Now!
If the reduction in VAT affects your business, you need to take action and update your accounting system so that you’re ready to report the new VAT rate from next Wednesday 15th July 2020. If you need advice or assistance in doing this, please get in touch with us.
The process of easing back into work post-lockdown is new for everyone – and different depending on the nature of your business. Call us for help and advice about any aspect of your finances or accounts – or even if you’d just like a friendly chat.
We hope you find this information useful. Please feel free to share it with other business owners in your contact sphere.
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