Summer Budget 2020 and includes the following with a suitable image:
Please see below a summary of the Summer Budget 2020. If you have any queries on any of the below and how it impacts on you please let us know.
- The chancellor confirmed that the furlough scheme will end in October 2020.
- A new Job Retention Bonus will be introduced to encourage businesses to retain furloughed workers. The £1000 bonus will be paid to employers who keep furloughed workers employed at least until 31st January 2021 and will be paid in February 2021. Terms of the bonus include the employee being brought back to undertake “decent work” and be paid a minimum of £520 on average each month from November – January.
- A new £2 billion Kickstart Scheme will be launched to create fully subsidised jobs for young people. Eligible candidates will be aged 16-24, claiming Universal Credit and at risk of long-term unemployment. There will be funding available to cover the National Minimum Wage of 25 hours a week on six-month job placements.
- Employment support schemes, training and apprenticeships will receive £1.6 billion in funding to assist young job seekers. This will involve a £2000 payment to businesses for each new apprentice hired under the age of 25. This is additional to an existing £1000 payment on apprentices.
- A new Eat Out to Help Out scheme throughout August will provide 50% discount for sit-down meals in cafes, restaurants and pubs to help rebuild the tourism and hospitality sector. This discount is capped at £10 per person and only available in participating restaurants between Mondays and Wednesdays.
- The rate of VAT applied on most hospitality and tourism related activities will be cut from 20% to 5% from 13th July 2020 to 12 January 2021.
- Funding announced to help the UK get greener and meet Net Zero by 2050.
- The threshold for stamp duty in England and Northern Ireland will rise from £125,000 to £500,000 on residential property sold between 8 July 2020 and 31 March 2021. More expensive properties will only be taxed on their value above that amount so this ruling will be beneficial to all home buyers. Landlords and second home buyers are also eligible for the tax cut but the 3% surcharge still applies.
For more information on these changes or to find out about any of our services, please do not hesitate to get in touch.