Coronavirus Job Retention Scheme (JRS) and Job Retention Bonus
The CJRS ends in October and the Chancellor looked to cushion expected redundancies with the announcement of a Job Retention Bonus (JRB). The new scheme will give employers £1,000 for each previously furloughed employee they retain and keep in employment until January 2021, as long as they are paid at least £520 a month. Further details of the scheme are expected later in July.
Kickstart Scheme and Measures to Help People Find Work
In order to support people finding jobs, the Chancellor announced the Kickstart Scheme, which will provide £2 billion to support the creation of “high quality” six-month work placements for 16 to 24-year-olds on Universal Credit and at risk of long-term unemployment.
The Government will provide employers that offer the placements funding equivalent to 100 per cent of the relevant level of the National Minimum Wage (NMW) for 25 hours a week. It will also cover the associated Employer NICs and minimum automatic enrolment pension contributions.
The Chancellor, Rishi Sunak, also outlined additional measures, including funding for traineeships and employers that hire new apprentices, as well as funding for several careers and job-finding programmes.
The apprenticeships funding will provide £2,000 to employers in England for every apprentice hired under the age of 25 and £1,500 for each newly hired apprentice aged 25 or older. This funding is in addition to schemes already in place to support employers in taking on apprentices.
There is a temporary cut in Stamp Duty Land Tax (SDLT) from 8 July by raising the nil-rate band from £125,000 to £500,000 until 31 March 2021. The Treasury estimates that, as a consequence, around nine in 10 people buying a main residence will pay no SDLT.
VAT Deferral Scheme
Expansion of HMRC’s Time to Pay Arrangements
Deferral of Self-Assessment Payment
Coronavirus Business Interruption Loan Scheme (CBILS)
Bounce Back Loans for small businesses
Small Business Grant Funding
Self-employment Income Support Scheme
Statutory Sick Pay Rebate Scheme
The Chancellor outlined a VAT rate cut for the Hospitality and Tourism sectors from 20 per cent to five per cent. The measures relate specifically to food and non-alcoholic drinks and to accommodation and admission to attractions, with further details expected to be published later.
The VAT rate change comes into effect on Wednesday 15 July 2020 and will be in place temporarily until 12 January 2021.
Eat Out to Help Out Scheme
The scheme will provide a discount of 50 per cent of up to £10 a person on eat-in meals, including non-alcoholic drinks, at participating establishments on Mondays, Tuesdays and Wednesdays for the month of August.
Restaurants, cafes and pubs can sign-up for the scheme on a new website on Monday 13 July 2020.
Business Rates Holiday
Protection against aggressive rent collection and closure
Find out more here.
For further information or to arrange for a no obligation preliminary discussion on how your company could qualify under this Government business support scheme, contact Steve Govey or your usual Beavis Morgan Client Partner.
Support for SMEs focusing on R&D
This is a fast-changing situation and it is anticipated that the new measures announced will continue to evolve.
The team at Beavis Morgan is on hand to guide business owners and managers through the weeks and months ahead.
We will continually monitor the situation and update you via this online portal. We also offer the opportunity for you to receive news alerts as they happen directly to your inbox.
You can register to receive these alerts via the contact form provided on this page.
Alternatively, if you have any concerns or queries and require business advice and support at this challenging time, email us at email@example.com.