summer statement 2020 - coronavirus update and government policies - key points

£1000 Job retention bonus to encourage firms to retain furloughed staff

• A one-off £1000 payment to employers for every furloughed employee retained to the end of 31 January 2021 - likely to be a credit to your paye bill rather than a cash payment
• Applies to workers earning £520 plus per month

5% VAT for six months - VAT cut for restaurants, hotels and attractions only

• Value added tax cut down from 20% to 5% from 15 July to 12 January 2021 for selected areas
• Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered
• Hotels and B&Bs and admission to attractions such as theme parks and cinemas are also affected
• Most importantly the 5% VAT cut rate does not need to be passed on to customers or for all items or even at all, so some business may still charge 20% on items

Zero Stamp duty up to £500,000 and 'green homes grant'

• The threshold for stamp duty on residential property in England and Northern Ireland will rise from £125,000 to £500,000 - 1st time buyers will gain as will landlords who will see their stamp duty reduced greatly for 2nd homes
• Applies from 8 July until 31 March 2021 only
• Up to £5,000 per household for 'green' projects to make homes more energy efficient in England - although the requirements and finer details mean that few people will be able to take advantage and it needs to be done via an approved builder which my end up costing you more anyway
• Up to £10,000 per household fully funded for low-income households - but be careful you cannot just renew your boiler or double glazing etc

50% Discount on restaurant meals in August only Monday to Wednesday

• "Eat out to help out" scheme offers up to 50% discount for every diner, up to £10 a head, from Monday to Wednesday throughout August 2020
• Covers food and non-alcoholic drinks - only not other items
• Applies at participating restaurants, pubs, cafes only - it is not compulsory all should participate
• Restaurant owners can claim the discount in full from the government via an online form - the speed and amount of return is yet to be seen

Financial Support for young workers

• "Kickstart scheme": £2bn fund to pay for six-month work placements for 16 to 24-year-olds on universal credit - you have to be on it to be eligible
• Payments will cover national minimum wage for 25 hours per week, plus national insurance and pension contributions per person
  
• £1,000 grant per trainee is available for employers who take on new trainees aged 16-24
  
• £2,000 grant for employers per apprentice under 25 hired, £1,500 for those over 25, for six months starting 1 August
  
• Participants can expect to receive £455 per month if they are under 18 years of age, £645 per month if 18 to 20, and £820 per month if 21 to 24
  
• No need to retain trainee after 6 months but they must be claiming universal credits - a good way for businessess to employ young part time trainees / employees and have the government pay for their wages for 6 months
  

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

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