Hi Connections,
You will have seen the announcements made by Rishi Sunak yesterday. These will affect many Members of this group and their respective clients. Here is a summary of the main announcements. The logistics and details of how they will be applied for are yet to be confirmed and I will be keeping a close eye on that.
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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 January 2021. This applies to workers earning over £520 per month, UK-wide
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SIX MONTH VAT CUT FOR RESTAURANTS, HOTELS AND ATTRACTIONS
Value added tax cut from 20% to 5% from 13 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.
Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected
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STAMP DUTY CUT 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
Applies from 8 July until 31 March 2021
Almost nine out of 10 transactions would be tax-free as a result
Up to £5,000 per household for projects to make homes more energy efficient in England. Will match owners or landlords' spend, £2 for £1 for most homes
Up to £10,000 per household fully funded for low-income households
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DISCOUNT ON RESTAURANT MEALS IN AUGUST
"Eat out to help out" scheme offers 50% discount for every diner, up to £10 a head, from Monday to Wednesday throughout August
Covers food and non-alcoholic drinks only
Applies at participating restaurants, pubs, cafes etc
Restaurant owners can claim the discount in full from the government via an online form
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SUPPORT FOR YOUNG WORKERS
"Kickstart scheme": £2bn fund to pay for six-month work placements for 16 to 24-year-olds on universal credit
Payments cover national minimum wage for 25 hours per week, plus national insurance and pension contributions for Great Britain
£1,000 grant per trainee for employers who take on new trainees aged 16-24 in England, aiming to triple trainee numbers
£2,000 grant for employers per apprentice under 25 hired, £1,500 for those over 25, for six months starting 1 August (in England)
Replies
Hi Iain,
I see your point. The SEISS scheme finishes end August (the guidance states it's not linked to 3 specific months) but you'd argue it covers June, July & August. There will be no further extension the government say. The first claim for March, April & May had to be submitted by yesterday 13th July - I hope yours is in.
The Furlough scheme finishes on the 31st October so the end date is inconsistent with the SEISS scheme. I sympathise with the self-employed. You could also argue they have less cash reserves than businesses with employees.
Hi Neil
Agree that this is inconsistant with the support given to businesses furloughing staff.
Hi Graeme,
Thanks for the clear update.
Any more on what he may do for the self employed to fill the gap between Aug and the end of Oct when furlough scheme is due to end?
I can't promise to have all the answers (in fact I guarantee I won't!) but if anyone requires an accountants help to interpret any aspects of the budget then please contact me, I'm happy to help.
Remember there's also the Scottish Government angle to some of the policies, for example the Stamp Duty rules are different up here, as Graeme alludes to in his initial post.
Thanks Neil, Agree the scottish LBTT is different and as below.
Change to starting threshold for residential property transactions
The Cabinet Secretary for Finance, Kate Forbes MSP, announced in her statement to the Scottish Parliament on Thursday 9 July that the starting threshold for LBTT for residential property transactions will be raised from £145,000 to £250,000.
Legislation is to be introduced to the Scottish Parliament to provide that the revised rates and bands, as set out in the table below, will apply to all relevant transactions where the effective date is between 15 July 2020 and 31 March 2021 (inclusive of these dates).
This will mean that residential property transactions where the purchase price is under £250,000, and to which the Additional Dwelling Supplement (ADS) does not apply, will attract no LBTT. For transactions where the purchase price is above £250,000, the rates and thresholds that usually apply to the proportion of the purchase price above that amount remain unchanged.