3 things you need to know about #Budget2020
We were looking for a budget to support businesses – jobs – and help entrepreneurs during unprecedented times.
Today’s statement by the Chancellor goes some way towards that goal – but we will be analysing the details over the next few days and weeks to see how it impacts our clients who are running businesses in the real world where existing conditions remain challenging.
Key highlights:
£1,000 Job Retention Bonus
If you have furloughed staff – and you bring them back into the workforce through to January, you’ll be entitled to £1,000 per employee. This is badged as an ‘incentive’ for employers to re-introduce furloughed workers to their business. You should only re-introduce employees to your business when it makes commercial sense to do so.
It was confirmed today that the furlough scheme will not be extended after October.
VAT rate cut
The VAT rate cut launches next Wednesday (15 July). This rate cut from 20% to 5% on food, hospitality and tourism is welcome. The key to its success for these sectors (apart from making bills slightly cheaper) is a positive reaction from consumers. If you need guidance on the VAT rate cut please contact our tax team now.
Trainees
In a further initiative to boost employment, the Chancellor announced a new trainee scheme for people aged 16-24 which may be of interest to some businesses. The new traineeships will provide classroom-based lessons in maths, English and CV writing, as well as up to 90 hours of unpaid work experience. Employers will be given £1,000 for each new work experience place they offer.
And finally…
There will be a new ‘Eat Out to Help Out’ scheme launched – which offers diners, through the scheme, 50% off their meals out (up to £10 per person) during August. Those hospitality businesses which offer this scheme can claim the lost revenue from the Government.
