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Posts archive for July, 2020


14th July 2020

July 2020 Summer Economic Update Summary

Filed Under: THL News


The Chancellor, Rishi Sunak has delivered a 2020 Summer Economic Statement update outlining the Government’s plans to protect, support and create jobs as we enter the ‘Recovery Phase’ of the Cornavirus pandemic.

VAT

  • VAT on food, non-alcoholic drinks, accommodation and attractions in the hospitality and tourism industry is to be reduced from 20% to 5%
  • The reduction takes effect from 15 July 2020 until 12 January 2021

 Furlough (Job Retention Bonus Scheme)

  • Employers will get £1,000 for every furloughed employee they bring back to full time employment from November to January
  • Employees returning to work under the scheme need to earn on average at least £520 per month between the end of the Job Retention Scheme and the end of January 2021
  • The Job Retention Scheme will end in October

 Kick Start Scheme (16-24 year olds)

  • People aged 16-24 on Universal Credit will be eligible for six month work placements funded by the Government
  • The scheme will be open to funding applications from August 2020, with the first jobs starting in Autumn
  • Employers taking young people on will be funded to the tune of 100% of the minimum wage for 25 hours a week
  • Firms topping up wages beyond that if they want to will receive a £1,000 admin fee

 Supporting Jobs

  • Businesses can receive payments of £2,000 for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice aged 25 and over, to run from 1 August 2020 to 31 January 2021

 Eat Out to Help Out

  • During August, every diner can receive a 50% discount of up to £10 per head on their meal, at any participating and eligible food service establishment

 Stamp Duty

  • Effective immediately, the Government will temporarily increase the Nil Rate Band of Residential SDLT to £500,000

Homeowners

  • The Government will provide at least £2 for every £1 spent by homeowners and landlords to make properties more energy efficient, up to £5,000 per household

If you would like more information on any of the points the Chancellor announced or how the plans affect your business, please do not hesitate to get in touch with the team at THL.

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