Share
The Budget announcement by the Chancellor Rishi Sunak has been significant with “bold” changes relating to boosting the economy, creating and supporting jobs and encouraging support for leisure and tourism businesses.
The Budget, which was billed as a ‘fiscal event’, has been much anticipated by businesses struggling after the Coronavirus pandemic. Our team of experts have been following the Summer Statement closely and have highlighted below what each of the three main areas outlined by the Chancellor might mean for you.
Job Retention Bonus – To help firms retain furloughed workers, the government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021. Further details about the scheme will be announced by the end of July.
Kickstart Scheme – A new £2 billion scheme will be launched to create hundreds of thousands of new, fully subsidised jobs for young people across the country. Those aged 16-24, claiming Universal Credit and at risk of long-term unemployment, will be eligible. Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions – and employers will be able to top this wage up.
Employment Support Scheme – £1.6 billion will be invested in scaling up employment support schemes, training and apprenticeships to help people looking for a job. Businesses will be given £2,000 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. A £111 million investment will be made available to triple the scale of traineeships in 2020/21 ensuring more young people have access to high quality training. £17 million of funding was also announced to triple the number of sector-based work academy placements in 2020/21 and £900 million to double the number of work coaches to 27,000.
These measures will provide welcome support for employers as they try to restart their businesses following the Coronavirus lockdown and should help to support jobs and training in the short term.
Eat Out to Help Out – This is an unprecedented scheme to encourage people to return to eating out by offering a 50% discount. The scheme will run for the month of August and eating establishments wishing to participate will be able to register their business online from Monday 13 July. For consumers, this means that you will receive a 50% discount on the cost of your meal and non-alcoholic beverages if consumed at the premises on Mondays to Wednesdays inclusive, throughout the month of August, with a cap of £10 per person.
For businesses this means that you will have to register from Monday 13 July on a ‘simple website’ to be able to participate. You will apply the discount to your sales and will make a claim weekly throughout August for reimbursement from the government. The money will be refunded to your bank account within five working days of making the claim.
VAT Reduction – There will be a temporary VAT cut for food and non-alcoholic drinks to support businesses and jobs in the hospitality sector. The reduced rate of VAT, down from 20% to 5%, will apply to suppliers of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. A similar reduction will also apply to accommodation and attractions, with both schemes running from 15 July 2020 to January 2021. There will also be a temporary waiving of VAT on Personal Protective Equipment (PPE) from 1 May to 31 October 2020.
Further guidance on the scope of each of the above reliefs will be published by HMRC in the coming days.
The housing market has been severely affected by the pandemic, with house prices falling for the first time in eight years. In order to ensure confidence in the property market two new measures have been announced.
Stamp Duty Holiday – In a bold move to kickstart the housing market, Rishi Sunak has increased the nil rate band for when stamp duty is paid from £125,000 to £500,000 for all main homes in England and Northern Ireland. This cut will start immediately and be in place until 31 March 2021. He has estimated that it will benefit 9 in 10 homebuyers, saving in the region of £4,500 on the average house purchase. Currently, stamp duty is not charged on the first £125,000 of a property’s selling price, with a 2% rate up to £250,000 and 5% on the next £675,000.
Green Homes Grant – A new £2 billion Green Homes Grant fund will be introduced to encourage homeowners and landlords to spend money this year to make their homes more energy efficient. This voucher scheme will provide at least £2 for every £1 that is spent on energy efficient work, such as loft, wall and floor insulation, up to £5,000 per household. For those on the lowest incomes the scheme will fully fund energy efficient measures up to £10,000 per household. Further details will be announced in due course, but this scheme aims to upgrade over 600,000 homes in England, saving households hundreds of pounds per year on their energy bills, which is fantastic news.
The team at David Allen will be working closely with clients to support them through the changes and to help them make the most of the announcements made by the Chancellor to get the UK economy moving again. The next annual budget is due in Autumn 2020.
If you have any queries about how we can help you, please contact us for advice and support.
15 June 2022
15 June 2022
14 June 2022
14 June 2022
13 June 2022
10 June 2022
10 June 2022
27 May 2022
25 May 2022
25 May 2022
25 May 2022
24 May 2022
20 May 2022
19 May 2022
4 May 2022
4 May 2022
4 May 2022
28 April 2022
27 April 2022
27 April 2022
27 April 2022
20 April 2022
19 April 2022
13 April 2022
12 April 2022
11 April 2022
8 April 2022
7 April 2022
5 April 2022
5 April 2022
5 April 2022
1 April 2022
1 April 2022
30 March 2022
25 March 2022
24 March 2022
23 March 2022
23 March 2022
23 March 2022
23 March 2022
23 March 2022
23 March 2022
23 March 2022
18 March 2022
17 March 2022
15 March 2022
15 March 2022
9 March 2022
9 March 2022
3 March 2022
1 March 2022
1 March 2022
1 March 2022
1 March 2022
24 February 2022
24 February 2022
23 February 2022
18 February 2022
14 February 2022
10 February 2022
10 February 2022
10 February 2022
4 February 2022
4 February 2022
4 February 2022
3 February 2022
3 February 2022
28 January 2022
19 January 2022
17 January 2022
14 January 2022
14 January 2022
10 January 2022
4 January 2022
4 January 2022
4 January 2022
15 December 2021
8 December 2021
2 December 2021
25 November 2021
25 November 2021
19 November 2021
17 November 2021
16 November 2021
15 November 2021
15 November 2021
15 November 2021
15 November 2021
15 November 2021
9 November 2021
4 November 2021
2 November 2021
22 October 2021
20 October 2021
14 October 2021
8 October 2021
7 October 2021
5 October 2021
1 October 2021
1 October 2021
24 September 2021
24 September 2021
23 September 2021
16 September 2021
16 September 2021
16 September 2021
10 September 2021
24 August 2021
10 August 2021
6 August 2021
4 August 2021
2 August 2021
29 July 2021
20 July 2021
16 July 2021
15 July 2021
15 July 2021
12 July 2021
8 July 2021
28 June 2021
25 June 2021
14 June 2021
13 June 2021
1 June 2021
28 May 2021
17 May 2021
4 May 2021
30 April 2021
28 April 2021
6 April 2021
24 March 2021
17 March 2021
10 March 2021
2 March 2021
24 February 2021
19 February 2021
10 February 2021
27 January 2021
17 December 2020
10 December 2020
7 December 2020
25 November 2020
19 November 2020
18 November 2020
11 November 2020
9 November 2020
3 November 2020
29 October 2020
26 October 2020
23 October 2020
22 October 2020
9 October 2020
30 September 2020
29 September 2020
24 September 2020
8 September 2020
8 September 2020
28 August 2020
25 August 2020
24 August 2020
19 August 2020
17 August 2020
13 August 2020
11 August 2020
5 August 2020
5 August 2020
4 August 2020
4 August 2020
21 July 2020
21 July 2020
20 July 2020
14 July 2020
14 July 2020
14 July 2020
8 July 2020
7 July 2020
7 July 2020
1 July 2020
29 June 2020
24 June 2020
21 June 2020
18 June 2020
17 June 2020
17 June 2020
15 June 2020
14 June 2020
13 June 2020
29 May 2020
14 May 2020
17 April 2020
17 April 2020
7 April 2020
6 April 2020
17 March 2020
11 March 2020
4 March 2020
4 March 2020
11 February 2020
14 May 2019
25 March 2019
We want to keep you up to date with relevant news, information, advice and changes which might impact you or your business. To ensure you get the latest updates delivered directly to your inbox, sign up to our e-bulletins below.
Available to download on iOS and Android by visiting the links below.
Unique access code: DavidAllen