08/07/2020 - Summer Budget Update
Coronavirus Job Retention Scheme
To be phased out over the next few months and ends on the 31st October as originally announced.
An additional incentive for employers to bring back employees from furlough is that they will receive a £1,000 bonus per employee. This is conditional on the employee:-
- being paid at least £520 per month in November, December and January.
- They have been furloughed at any point and claimed for under the CJRS.
- Continuously employed through to at least 31st January 2021
Employers will be able to make the claims in February 2021 once accurate RTI data up to the 31st January is received by HMRC.
More information on this scheme will be available by the 31st July 2020.
Kickstart scheme is for employers who create new jobs for any 16-24 year olds at risk of unemployment.
The government Kickstart scheme will pay the wages for six months and an amount for overheads. This could give employers a grant of around £6,500 for each employee taken on. Funding will be conditional on it being a new job, paid at national minimum wage and be for at least 25 hours a week.
Employers will be able to apply for the scheme from next month, with the first Kickstarter’s in jobs in the autumn.
The government will pay employers £1,000 to take on new trainees.
For the next six months employers who create new apprenticeships will get a grant of up to £2,000 per apprentice hired under 25. For apprentices over 25 up to £1,500.
Providing additional funding to Department for Work and Pensions to fund additional support to help those on universal credit get back into work
From September homeowners/landlords will be able to apply for vouchers to make housing more energy efficient and to create local jobs.
The government will cover two thirds of the cost up to £5,000 per household, and up to £10,000 for those on low incomes.
Stamp duty cut
To boost the housing market the stamp duty threshold will temporarily rise until 31st March 2021 from £125,000 to £500,000.
VAT cut for six months from 15 July 2020 to 12 January 2021 reducing the rate from 20% to 5%. The VAT cut will be applied to food, non-alcoholic drinks, accommodation, eat in or hot takeaways, cinemas, zoos and theme parks.
The introduction of the “eat out to help out” discount throughout August 2020.
Discount will apply to meals eaten at any participating business on Monday to Wednesday and will be 50% off (maximum of £10) per head. The government will open a website where businesses can register for the scheme online, with the funds they claim back paid within five working days.