Please see below an update on the latest schemes as announced yesterday by the Chancellor:
Furlough Bonus Scheme
This is a one-off payment of £1000 to employers that have used the CJRS for each furloughed employee who remains continuously employed until 31st January 2021. To be eligible employees need to:
- earn at least £520 per month on average for November, December and January
- have been furloughed by you at any point and legitimately claimed for under the Coronavirus Job Retention Scheme
- have been continuously employed by you up until at least 31 January 2021
The bonus will be able to be claimed by employers in February 2021. More guidance on this scheme is expected later in the year.
Eat Out to Help Out Scheme
During August, diners can get 50% off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes and other establishments that have registered.
Companies can start to register on the Governments website from Monday 13th July.
Vat Reduction Scheme
From 15 July until 12 January 2021, the UK government will cut VAT from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol. This VAT reduction also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites, as well as attractions like cinemas, theme parks and zoos.
It has not yet been confirmed if the VAT reduction will be applicable to those on the Flat Rate scheme. Further information on this scheme is expected to be released over the coming days.
An increase in the Stamp Duty Land Tax (SDLT) threshold in England and Northern Ireland – increasing the threshold under which no SDLT is paid on the purchase of a main home from £125,000 to £500,000, with immediate effect until 31 March 2021.
Keeping you informed
We expect more information to be released covering the above schemes; as soon as we receive any further information we will let you know.
Should you have any concerns, or any further questions please do get in touch with your dedicated accountant.
The Government have recently announced a Discretionary Grant Scheme for small and micro business with fixed property costs that were not eligible to claim neither of the previous Small Businesses Grant Fund nor the Retail, Hospitality and Leisure Grant Fund. If you have already benefited from either of these schemes, then you will not be eligible to claim via the new Discretionary Grant Scheme.
If you are working from home, then you are also not eligible to apply for this scheme.
Discretionary Grant Scheme
Under the new scheme you may be eligible to receive a grant of £25,000, £10,000 or any amount under £10,000.
You are potentially eligible if your business:
- is based in England
- has fewer than 50 employees
- has fixed building costs such as rent
- was trading before 11 March 2020
- not be a chain or subsidiary of a larger company
- has annual property or other fixed costs of over £3,000 per year (which, for market traders, includes pitch fees)
- has been adversely impacted by the Coronavirus
Please note you are still eligible if you have applied for either the Coronavirus job Retention Scheme or the Self-Employed income Support Scheme
How to apply
Visit your local council’s website to find out how to apply. Due to the limited funding available and expected over-subscription to the scheme, grant applications will need to be submitted to the City Council for assessment, with payments expected to start in June. The grant will not need to be repaid, however please note that it will be taxable.
Please be aware that the closing date for applications is 15th June 2020.
Should there be anything further that we can assist you with, please do get in touch.