On 8 July 2020, the Chancellor of the Exchequer, Rishi Sunak MP, presented a Summer Statement titled ‘A Plan for Jobs’.
In his announcement the chancellor outlined a number of measures to aid the UK’s economic recovery as a result of the coronavirus pandemic.
The main aspects of the Summer Statement include:
- Job Retention Bonus
Rewarding businesses that bring furloughed employees back to work, the Job Retention Bonus is a one-off bonus payment of £1,000 for every employee brought back to work, who remains continuously employed to the end of January 2021.
- Kickstart Scheme
The Kickstart scheme will provide opportunities for six-month work placements within the private sector, for anyone aged 16 to 24 receiving Universal Credit.
- Hospitality & Tourism VAT Cut
From the 15 July 2020 to 12 January 2021, restaurants, hotels and attractions across the UK will pay a reduced (5%) rate of VAT.
- Eat Out to Help Out
In a bid to further support the hospitality sector throughout August 2020, the Eat Out to Help Out scheme entitles diners to save 50% (up to £10 per head) on their food bills from Mondays to Wednesdays at participating establishments.
The chancellor also announced a £2,000 payment for firms who take on young apprentices, a cut in stamp duty effective immediately on properties worth up to £500,000, and a Green Homes Grant energy voucher scheme.
For more information, read the full A Plan for Jobs 2020 Policy Paper.
Whilst the changes around VAT are targeted towards the hospitality and tourism sectors, it’s important that everyone understands what this means. Businesses that buy and sell food, provide accommodation or manage attractions will need to update their software for this VAT change which comes into effect on the 15 July 2020, and we’re here to help.
Following the announcement, we will be contacting our customers to discuss what impact the statement might have on their business. If you have any questions about the changes outlined in the Summer Statement and how to manage them within your software, get in touch or call Percipient on 01606 871332.