Rishi Sunack’s Summer Update
• As previously stated, the job retention scheme will be wound down and will cease in October 2020.
• The new Job Retention bonus of £1000 will be paid to employers who retain furloughed staff as employees until January 2021.
• The Kick start scheme is a job retention scheme injecting £2 billion into employing 18-24-year-olds. Employer creating new roles for 18-24-year-olds will get support from the government who will pay the employees’ wages for new roles which must be 25 hours a week at the minimum wage.
• Training –alongside the kick-start scheme a new apprenticeship scheme will pay employers £1500 for every apprentice over 25 years of age they employ or £2000 for apparent=tices under 25 years of age.
• Green investment -£2billion has been set aside to refit homes with insulation and to cut carbon emissions. Vouchers worth “£5k to £10k will be available to poorer families to help with these costs.
• £1bilion has been set aside to make public buildings greener.
• Stamp Duty cuts-the threshold for payment of stamp duty has been increased from £125k to £500k with immediate effect until 31/3/2021.
• VAT rates for food, accommodation, and attractions have been cut to 5% for the next 6 months.
• Discounts of 50% (up to £10 per person including children ) will be available from participating restaurants when you eat out on a Monday, Tuesday or Wednesday in August.
Green Investment Scheme Vouchers
The scheme gives vouchers to households who are undertaking insulation of their property or who are installing systems to help cut carbon emissions in their homes.
The scheme is going to provide vouchers worth between £5,000 and £10,000 for low-income households in the UK.
The government is yet to publish the detailed eligibility criteria for the scheme but has said it will launch the scheme in September and households will have to apply online.
Job Retention Scheme
Available to all employers –paying 80% of gross salary plus ERS Nic and minimum pension contributions for furloughed employees. The scheme initially running March –June 2020.
Deferring Vat Payments
VAT payments due between 20 March 2020 and 30 June 2020 can be deferred until 31.1.2021-you still need to file your VAT returns –make sure you cancel Direct debit arrangements in good time this is an automatic relief-no application necessary.
Deferring Self-Assessment Payments On Account Due 31 July 2020
Any taxpayer due to make a payment on 31 July 2020 can defer it until 31.1.2021.
This is an automatic relief –no application is necessary
Self-Employed Income Support Scheme
Pays 80% of the average last 3 years trading profits IF they are over 80% of taxable income and the taxpayer has suffered a loss of business due to COVID-19.
Statutory Sick Pay
Support for small and medium-sized businesses.
12 Month Business Rate Holiday For Retail Premises, The Hospitality, Leisure, And Nursery Sectors
£10,000 grant for those in receipt of small business rate relief or rural rate relief.
£25,000 grant for hospitality and leisure businesses with the property of rateable value between £15,000 and £51,000.
Coronavirus Business Interruption Loan Scheme
To support long term viable businesses-available via the banks –up to £250,000 unsecured loans, 12-month interest, and payment holiday, maximum repayment term 6 years.
Lending Facilities Via Bank Of England To Help Support Larger Businesses Bridge Liquidity Issues
For the HMRC Time To Pay Scheme CALL 0800 024 1222