The Chancellor has announced some new measures in response to the ongoing Covid-19 pandemic and the extraordinary impact it is having on the economy.
The Job Retention Scheme has been widely used so far with millions of workers being placed on furlough since the scheme began. Employers are now being incentivised further to try to maintain as many jobs as possible. For each employee who has been on furlough at any point the government will give the employers a £1,000 bonus if they remain continuously employed through to January 31st 2021. The employees must also earn at least £520 per month on average for November, December and January for the employer to qualify for the bonus. The employers will be able to claim the bonus from February 2021 once accurate RTI data to 31st January 2021 has been received. Further updates are expected once the full guidance has been published in the Autumn.
There is a VAT reduction from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol. This VAT reduction also applies to all holiday accommodations as well as attractions like cinemas, theme parks and zoos. The VAT reduction is effective for the period 15th July 2020 – 12th January 2021.
A new scheme labelled the Eat Out to Help Out Scheme has also been launched. During August diners can get 50% off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes and other establishments that have registered.
Finally, and increase in the Stamp Duty Land Tax threshold in England and Northern Ireland has come in with immediate effect through to 31st March 2021. No Stamp Duty will be paid on the purchase of a main home to the value of £500,000, increased from £125,000.
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