Business Support Update
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.
Stamp Duty
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.