09 Jul Dig into Summer Economic Statement 2020 to Know More About New Government Contract Jobs
Is job search getting on your nerves? Thanks to the right government schemes, about 9 million workers are getting help. Self-employment income support has helped more than 2.7 million people. You just need to be aware of all the government policies to help you get the right job.
What’s the Coronavirus Job Retention Bonus?
The job focuses on getting all the furloughed employees back to business. To make sure the entire process involves incentives, the government even announced £1,000 for any employer who brings back a furloughed member of staff through to January 2021. The scheme comes to end by October.
What Bonus to Expect?
- Here’s what to expect out of this bonus:
- One-off payment of £1,000; For UK employers-
- Involves furloughed employees to remain permanently employed through to 31 January 2021
Employees must earn above the National Insurance lower earnings limit (£520 per month) on average between 31 October 2020. When the CJRS ends and the end of January 2021.
When to Expect the Bonus Payment?
The bonus payments will be in effect from February 2021. The bonus may seem like a small amount but it’s a lot if you take a look at the bigger picture. The bonus payment is helpful in paying off your additional taxes. For example, self-assessment taxes due at the end of January (by the unincorporated business owner) and VAT at the end of March.
What Opportunities Does the Kickstart Scheme Bring in for Youngsters?
Kickstart scheme pays employers directly to create new jobs. Any 16 to 24-year-old at risk of long-term unemployment it’s the best news ever. These jobs are created from scratch.
The government pays young people for six months. You can also expect an overhead grant of £6,500. These jobs are paid for the national wage, and for at least 25 hours.
An initial £2bn will be available to fund the scheme, there’s no quota available as of now. Employers will be able to apply from August.
Besides, the Government pays employers £1,000 to take on new trainees. This triples the number from level 2 and level 3 courses, at a cost of £100 M. There is also extra funding for career advice. You can also expect new apprenticeships within a period of six months. You can also expect a brand new bonus of £1,500 for businesses hiring apprentices aged 25 and over.
A £2bn green home grant is announced to support a green-led recovery. From September, property owners will be able to apply for vouchers to make housing more energy-efficient and to create for local jobs
The government will cover two-thirds of the cost up to £5,000 per household and up to £10,000 for those on low incomes. There will also be £1bn of funding available for developing energy efficiency in public sector building
Property transactions fell by more than 50% in May, while it took about eight years for other prices to fall. It gave a boost to the housing market. You can expect a temporary reduction in stamp duty land tax (SDLT) in England until 31 March 2021
To achieve the reduction, the nil rate band threshold for SDLT payment increased from £125,000 to £500,000. This change applies with immediate effect on 31 March 2021. Treasury estimates that the average homebuyer will see their bill fall by £4,500. Nine out of ten main home buyers pay no duty at all.
Chartered Institute of Taxation (CIOT) has suggested that replicating the Chancellor’s plans to cut SDLT will result in more than 90% of Scottish house sales being tax-free. But could drastically cut Land and Buildings Transaction Tax (LBTT) receipts.
What’s the VAT Cut for Hospitality Sector
A six-month reduction in the VAT rate on supplies of food and non-alcoholic drinks. These include restaurants, pubs, bars, and cafes. As well as on supplies of accommodation and admission to tourist attractions.
The rate cut from 20% to 5% will take effect from 15 July 2020. Expect it to be delivered by 12 January 2021 to support businesses and jobs in the hospitality sector in the UK
It is not yet clear how VAT paid on pre-booked holidays and advanced tickets are effected. Normal rules on a reduction in VAT rate suggest that a lower rate may be available. Further guidance from HMRC is also here for your convenience.
Clarity is also needed on how the VAT change will interact with the government’s new ‘Eat Out to Help Out’ schemes. This scheme will see the government provide participating businesses with half of the cost up to £10 per head for eat-in meals sold Monday-Wednesday throughout August.
The full text of the Chancellor’s Summer Economic Statement 2020 is available on the Treasury website at A Plan for Jobs’s speech.
Please contact us if we can help you with these or any other tax or accounts matters.