Rishi Sunak delivered his mini budget on the 8th July, with a package to kickstart the economy and a pledge to “protect, support and create jobs”.
In this article, we’ve provided you with an overview of the key announcements that were made by Mr Sunak.
Homebuyers will benefit from an emergency stamp duty holiday on property worth up to £500,000, thereby cutting stamp duty bills by an average of £4,500 and up to £15,000. The tax break is effective immediately and will last until 31st March 2021.
VAT on food, non-alcoholic beverages, attractions and accommodation has been reduced from 20% to 5%. This tax cut came into force on 15th July and will remain in place until 12th January 2021. It will apply to businesses including restaurants, cafes, pubs, hotels, campsites, caravan parks, theme parks, cinemas and zoos.
The Chancellor also introduced the “Eat Out To Help Out” scheme, where customers will be able to claim a reduction of up to a maximum of £10 per head at participating businesses from Monday to Wednesday in the month of August. The discount covers children’s meals too, although it won’t cover any drinks ordered to accompany your food.
Businesses who bring back their furloughed workers will receive a £1,000 job retention bonus per employee. To be eligible for the bonus, workers must have been continuously employed and earn an average of £520 per month in November, December and January.
A new £2 billion “Kickstart Scheme” for young people on Universal Credit was unveiled, aimed at finding work for the 350,000 unemployed. Under this initiative, the government will pay towards six months of wage costs for people aged 16 to 24 who are on Universal Credit and are hired by employers. It will cover 100% of the minimum wage for a maximum of 25 hours a week, with firms being able to top up wages if they choose.
For the next six months, the Government will pay businesses up to £2,000 for every new apprentice under 25. It will also pay £1,500 for every new apprentice over 25.
To find out more about how these latest announcements may impact on your financial position, please telephone us on 01772 729742 or alternatively, simply fill out our online enquiry form to arrange a virtual meeting with one of our advisors.
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