When the whole United Kingdom started to develop fear of an upcoming economic crash, the Chancellor Rishi Sunak announced the ‘Mini Budget 2020’ to give confidence to protect, support and to create jobs in every part of the country.
From stamp duty to dining out, the budget aims to save the economy with a £30 billion economic stimulus package. As part of the Mini-Budget, the Chancellor announced a stamp duty holiday, VAT cut for the hospitality industry, restaurant discounts and a job retention bonus as a suite of measures to boost hiring employees.
Taj Accountants has come up with all the important highlights written below in order to help the readers stay updated regarding their current economic situation:
1. Stamp Duty Holiday
The Chancellor announced a widely-expected stamp duty holiday from which Homebuyers will be benefited with a temporary exemption from paying the tax for the first £500,000 of any property price, saving them an average of £4,500 and up to £15,000. The holiday will run until March 31, 2021.
Contact Accountants in London for Tax related advice and issues.
2. VAT Cut for the Hospitality Industry
VAT on food, non-alcoholic drinks, accommodation and attractions will be slashed from 20% to 5% aiming to inject £4bn into the industry and it is expected to save Brits £160 a year on staycations and meals out. However, the tax-cut does not apply to alcohol, it will only apply to food and non-alcoholic beverages. This tax cut applies to the businesses given below:
1. Accommodation in hotels
2. B&Bs
3. Cafés and pubs
4. Campsites
5. Caravan sites
6. Cinemas
7. Restaurants
8. Theme parks and
9. Zoos
The tax cut will take action next Wednesday, July 15 and will remain in force until January 12, 2021. Small Business Accountants can help you sort your VAT related issues with accuracy.
3. Eat Out to Help Out
As per the announcement, Chancellor Sunak unveiled a landmark 50% discount on meals out, worth up to £10 a head, during August. Meaning, every Briton will be given an “Eat Out to Help Out” scheme discount on meals eaten at any participating business Monday to Wednesday in the month of August.
The discount will apply to food and non-alcoholic drinks only and the restaurants will be able to claim back the cost and receive the money within five days. Our professional Restaurant or Takeaway Accountants can let you know more and help out with your accounts and tax planning for your restaurant or takeaway.
4. Kickstart Scheme: Plan for Jobs
The Chancellor had unveiled a new £2billion "Kickstart Scheme" as a key component of his “Plan for Jobs . The scheme aims to create 350,000 government-subsidised jobs throughout Britain. Under the initiative, unemployed young people on Universal Credit aged between 16-24, will get an offer of a six-months paid wage costs employment. The Treasury will cover 100 per cent of the National Minimum Wage for each employee for a maximum of 25 hours a week with firms able to top up wages. This initiative particularly aims to trigger a mass hiring spree by companies and secure jobs for the next generation of workers.
5. Jobcentre: Plan for Youth Employment
One of the largest increases in front line Jobcentre staff has been announced, doubling the number of work coaches to 27,000. Over 270,000 youths are also set to benefit from job advice through a £32million investment in the National Careers Service. It’s predicted by experts that youth employment will rise from 420,000 to over a million by the end of 2020.
6. £1,000 bonus for firms hiring trainees
The Chancellor also announced that an investment of £111million will take place to triple the number of traineeships. Under this initiative, businesses in England will be offered a £1,000 bonus for every 18- to 24-year-old new trainee they take on from September. The grant will be capped at 10 jobs per firm. As a part of this initiative, young employees will be trained on Maths, English and CV writing as well as other necessary guidance regarding their workplace.
7. £2,000 bonus for firms creating apprenticeships
To create new apprenticeships, the Government will pay businesses up to £2,000 for every new apprentice under 25 for the next six months. Additionally, firms will get paid £1,500 for every new apprentice above 25 hired. This scheme aims to boost apprenticeships for young people and encourage firms to take on more trainees.
8. £1,000 job retention bonus furloughed workers
Businesses now can bring back furloughed workers and the government will pay businesses a £1,000 job retention bonus for every furloughed worker that is brought back and employed until the end of January 2021. In order to get the bonus, employers must pay each worker £520 per month on average, and continuously employ them through to January.
9. Green grants for Homeowners and landlords
The budget includes a £3bn package of green investment to help create thousands of jobs. Around £1bn has been set aside to help make public sector buildings greener. Homeowners and landlords can benefit from £2bn of grants to pay for “green” upgrades to make their houses more energy efficient.
As per the grant, homeowners and landlords will be given £5,000 in energy saving vouchers from September to help them insulate homes. The most vulnerable households will get up to £10,000 to make the upgrades, such as loft and wall insulation and to help make their houses more environmentally friendly. Under the scheme, the government will cover at least two thirds of the cost homeowners spend on green upgrades.
10. Green Jobs Challenge Fund
The government will provide up to £40m for a ‘Green Jobs Challenge Fund’ to create 5,000 jobs at environmental charities and public authorities. Around £100m of new funding has been set aside for direct air capture, a technology that takes carbon dioxide out of the air, while an extra £10m will be given for new electric car development project
How Taj Accountants Can Help You?
Taj Accountants are multi-award winning specialist Small Accountants in East London who offer a wide range of accounting and taxation advice to sole traders, limited companies or partnerships. Whether you are a start-up company, poised for expansion or simply looking for manageable account support, you can always rely on Taj Accountants.
DISCLAIMER: The purpose of the blog is to provide information and insight regarding the situation. The readers must contact experts before making any decisions based on the information. We highly appreciate you to contact Taj Accountants for further assistance.
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