Mini Budget 2020
Date: 08/07/20 | Author: Sean Toomer
The Chancellor today announced a welcome host of new measures to help further support the struggling hospitality industry and small businesses.
Job Retention Scheme Bonus
The Job Retention Scheme has been confirmed it will not be extended passed the October cut off. To read more about this, see our previous blog on the JRS here.
Rihsi did however, announce a £1,000 bonus for any employee that has been furloughed, that an employer brings back to work, and retains until January 2021 (3 months from the end of furlough). To be eligible, an employee must earn above £520 per month on average between October 2020 and January 2021. Payments are expected to be made in February and we'll find out more on this nearer the time.
It's a pretty welcome bonus to small businesses who have struggled to pay bills in recent months and will hopefully prevent a lot of unemployment.
This new support to help young people aged between 16-24 get started with their careers. The new KickStart scheme will pay employers directly the minimum wage for these employees up to 25 hours per week for 6 months, plus an amount to cover overheads. Applications are expected to open in August, with the first jobs being created in the Autumn. More details to be announced later.
£1,000 bonus for hiring a trainee
Another good reason to look at hiring is the £1,000 bonus to take on a trainee, capped at 10 jobs per employer.
The Government will pay a bonus of £2,000 to an employer if they hire an apprentice under 24, or £1,500 if they are over 25. A good time to hire young!
Stamp Duty Cut
The threshold that Stamp Duty is payable has been increased to £500k, in a bid to get people buying, taking effect immediately, up to 31 March 2021. If you're looking to move, and considering mortgage options, contact these awesome guys.
VAT cut to 5% for Hospitality Industry
The Hospitality Industry has been all but destroyed thanks to Covid-19. In a bid to help boost trade, the government has dropped the rate of VAT from 20% to 5% on food, accommodations and attractions from 15 July 2020 to 12 January 2021. We have a more detailed blog on this here.
Eat Out to Help Out
Finally, Rishi announced a new Eat Out to Help Out Scheme to boost confidence for the public to go back out to restaurants, cafe's and bars. Eating out at participating restaurants from Monday to Wednesday will get you 50% off (up to £10 per head). Businesses need to register here. We have more details on this scheme on our blog here.
Any questions on the above, get in touch.
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