Important news from the 2020 Summer Budget

The Chancellor Rishi Sunak unveiled further government support during the Summer Budget and here is our overview:

Coronavirus Job Retention Scheme (CJRS)

With the CJRS ending in October the Chancellor is looking to cushion the number of redundancies. He announced details of a new scheme, the Job Retention Bonus (JRB), which will give employers £1,000 for each previously furloughed employee they retain and keep in employment until January 2021.

Kickstart Scheme

The Kickstart Scheme was announced in the Summer Budget to support people finding jobs. The scheme will provide £2 billion to support the creation of ‘high-quality’ six-month work placements for 16 to 24-year olds on universal credit and at risk of long-term unemployment.

The Government will provide employers that offer the placements funding equivalent to 100% of the relevant level of the National Minimum Wage (NMW) for 25 hours a week. It will also cover the associated Employer NICs and minimum automatic enrolment pension contributions.

The Chancellor also discussed additional measures, including funding for traineeships and employers that hire new apprentices.

VAT reduction for hospitality and tourism sectors

A VAT rate cut was announced for the hospitality and tourism sectors from 20% down to 5%. These measures were relating to food and non-alcoholic drinks and accommodation and admission to attractions. The change in VAT rate is now live and will be in place until 12 January 2021.

Stamp Duty Land Tax Holiday

Rishi Sunak announced a temporary cut in Stamp Duty Land Tax (SDLT) from 8 July by raising the nil-rate band from £125,000 to £500,000 until 31 March 2021. This should result in nine out of 10 people who are buying a main residence not paying SDLT.

Eat out to help out

Finally, the Chancellor also announced the ‘Eat Out to Help Out’ scheme, providing a discount of 50% of up to £10 a person on eat-in meals at participating establishments on Monday – Wednesday for the month of August.

Please get in touch if you have any questions about the above schemes and we will provide you with as much advice as possible.