The economic impact of COVID-19: what does it mean for jobs, businesses and tax?
Rishi Sunak announces further measures as part of a ‘mini budget’ for the next phase to the recovery from coronavirus.
The following announcements for businesses were made:
- VAT cut from 20% down to 5% on supplies of food and non-alcoholic drinks from pubs, restaurants, cafes, and similar premises, as well as supplies of accommodation and admission to attractions across the UK, with effect from 15 July until 15 January 2021.
- Temporary Stamp duty land tax holiday on property sales up to £500,000 until 31 March 2021.
The rates from 8 July 2020 to 31 March 2021 will be as follows:
Up to £500,000
Over £500,000 to £925,000
Over £925,000 to £1.5m
- A Job Retention Bonus: the government will pay employers a one off payment of £1,000 per employee that they bring back from furlough, as long as the employee is kept in continuous employment until the end of January 2021.
- £2bn ‘kick start scheme’ designed to create jobs for young adults. The government will subsidise the wages of six-month work placements aimed at people on Universal Credit aged between 16-24 year olds.
- Apprenticeships boost, the government introduced a new payment of £2,000 for each new apprentice under the age of 25 in England, and £1,500 for each new apprentice older than that, available from 1 August 2020 to 31 January 2021.
Please keep up to date with our blogs as we await further guidance on the announcements.