Chancellor Summer Statement Update

This afternoon the Chancellor has set out more support for the UK as the economy begins to recover from the Coronavirus pandemic.

The following has been set out:

Kickstart Scheme

A new Kickstart Scheme has been created that will pay employers to create new jobs for 16-24 year olds at risk of long term unemployment.

For each "kickstarter" job, the government will cover the cost of 25 hours work a week at the National Minimum Wage - £4.55 for U18's, £6.45 for 18 to 20 year olds and £8.20 for 21 to 24 year-olds.

Coronavirus Job Retention Scheme

If businesses bring back a member of staff who has been furloughed and continuously employ them through to January the government will pay a Job Retention Bonus of £1,000.

Any employee with average monthly earnings of £520 from November to January will be eligible.

VAT cut in the Hospitality Sector

VAT on goods and services in the hospitality sector has been reduced from 20% to 5%.

VAT Deferral – Reinstate Direct Debits

We would like to remind clients that cancelled their Direct Debit set up with HMRC for VAT to defer payments, will need to reinstate this through the portal for the payment to be taken. This can take 3 working days to be actioned.

Apprenticeships

The government will pay businesses to hire apprentices - with a one off payment of £2,000 for under 25 year olds and £1,500 for over 25 year olds.

Stamp Duty

There will no longer be stamp duty due on property purchases below £500k.

Eat Out to Help Out

Restaurants can participate in a new scheme whereby a discount will be provided from the government to people dining.

This can be set against food and non-alcoholic drinks and, 50% of the total cost up to £10 per person can be claimed. 

The refund will be transferred from the government to the restaurants bank account within 5 working days.

More information will be provided on gov.uk on how to register and apply soon.

 

As ever, when further information comes to light, we will continue to update you.

 

Andrew Douthwaite

Manager

Hamlyns LLP

E: andrew.douthwaite@hamlyns.com

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