Yesterday Chancellor Rishi Sunak delivered a summer statement outlining new measures taken by the Government to support small businesses as the economy reopens. The business measures announced included:
Job Retention Bonus Scheme
A one-off payment of £1,000 per employee to employers who have used the Coronavirus Job Retention Scheme (CJRS) to furloughed employee who return to work and remain employed until 31 January 2021.
To be eligible, an employer’s employees will need to:
Earn at least an average of £520 per month on average for November, December and January
Return to work before the end of October 2020
Have been furloughed and legitimately claimed for under the Coronavirus Job Retention Scheme
Have been continuously employed until at least 31 January 2021.
Claims can be made from February 2021
Under 25s Kickstart Scheme
Employers are to be paid to create jobs for 16-24 year olds. The government undertakes to pay wages for up to 6 months, with a grant of up to £6,500, made up as £5,500 to cover wages and £1,000 to cover administration costs.
The purpose is to encourage employers to recruit those most at risk of long term unemployment. Wage payments must meet national minimum wage requirements, with quality jobs and good skills.
Wage payments must meet national minimum wage requirements, with quality jobs and good skills
Employers will be able to apply from 1 August for new starters in place in the autumn
The wages paid are intend to cover 25 hours of work a week
The scheme will run to December 2021
There is no cap on the number of placements
It applies to England, Scotland and Wales, with a similar scheme to come for Northern Ireland
The government is to pay employers £1,000 per employee for recruiting trainees aged 16-24 for work placements.
The aim is to triple trainee numbers
The scheme applies to England only
Employers are to be paid £2,000 per employee to recruit apprentices under 25s. While £1,500 will be available for those recruiting apprentices over 25. The scheme is to run from August to 31 January 2021 The incentive payments will be in addition to the existing £1,000 payment the government provides for apprentices.
Hospitality and tourism
Eat out to help out
Mr Sunak announced an "Eat Out to Help Out" discount, which he said would help protect 1.8 million jobs, at a cost of £0.5bn. The discount will apply Monday to Wednesday to meals eaten at participating business, up to a maximum of £10 per head, including children.
Applicable during August from Monday to Wednesday, diners can receive 50% off eat in bills up to £10 per person
Restaurants can claim back retrospectively every week
Discount applies to food consumed not alcohol
Businesses will need to register online.
Six-month VAT cut for restaurants, hotels and attractions
The Chancellor also announced a Value Added Tax, cut from 20% to 5%, from 15 July to 12 January 2021 for food and non-alcoholic drinks consumed in restaurants, pubs and cafes, as well as for hot takeaway food.
Other qualifying areas:
Sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities
Admissions to theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
More information can be found in sections 30.7.4 to 30.9.2 of VAT guide (VAT Notice 700).
A copy of the government’s policy paper ‘A Plan for Jobs 2020’ full plan can be found here