During the Mini Budget of Wednesday 8th July, Chancellor Rishi Sunak announced a wide variety of changes that will affect businesses in every sector across the UK. From financial rewards for bringing furloughed staff back to work, to a scheme that incentivises the public to visit bars and restaurants in August, there was quite a lot to take in. That’s why Aaron Gilmore at TreyBridge Accountants has pulled together all of the main points in no-nonsense language.
“We’re very impressed with the range of bonuses and initiatives being put in place,” says Aaron. “Whether you’re a sole trader, a newly established start-up or the owner of a multinational firm, make sure to read through them all and see how they will apply to your business, potentially making a significant difference to your cashflow.”
Return to work bonus
A new policy is being introduced for employers that successfully return furloughed employees to work. The government will pay a £1,000 bonus to a business for each employee brought back and retained until January 2021 or after.
Each employee needs to be paid at least £520 on average per month in order for the business to receive this bonus.
Kickstart scheme
Giving young people the best chance of getting a job, the Kickstart Scheme applies to 16-24 year olds at risk of long-term unemployment.
If the young person works a minimum of 25 hours per week at your company and is paid at national minimum wage, their wages will be paid by the government for six months. Employers can apply to be part of the Kickstart scheme from August and it will commence in autumn. There’s no cap on the number of places available.
Traineeships
Employers will be paid £1,000 to take on new trainees. This will support young people to enter fulfilling careers whilst reducing the UK’s skills gap.
Apprenticeships
For the next six months, employers will be paid £2,000 for each new apprenticeship they create. There is also a brand new £1,500 bonus granted to businesses that hire apprentices aged 25 and over.
Re-employment
£1bn is being invested into the DWP to get people back into quality work and support the unemployed. Meanwhile, the creation of jobs in every region and sector will be accelerated through an additional £5bn of investment projects.
Green jobs
To ensure a green recovery with the environment at its heart, a new £2bn Green Homes Grant will be launched in September for homeowners and landlords. This will be delivered through vouchers that enable green technology to be installed in properties.
Up to £5,000 is available per household, with low income homes having the option to receive the full cost up to a maximum of £10,000. This initiative will also include the decarbonisation of social housing.
Stamp duty
Taking immediate effect, there will be no Stamp Duty on the sale of property or land up to the first £500,000 of a transaction until 31st March 2021.
Hospitality and tourism
From Wednesday 15th July 2020 until 12th January 2021, VAT will be reduced from 20% to 5% on food, accommodation and attractions in the hospitality and tourism sectors.
Additionally, during August 2020, everyone in the country will receive an ‘Eat Out to Help Out’ discount. This offers 50% off meals up to a maximum discount of £10 per head, including children. Participating businesses need to register through a website that will launch in mid-July. The funds are then claimed back by the business within five working days.
Aaron at TreyBridge Accountants says: “Clear and honest information is at the core of everything we do, which is reflected by the fact that all of my advice is completely free of charge.”
