Ranging from new apprenticeships to reduced VAT, the Mini Budget came with a lot of changes that apply to companies across every sector. To help business owners and management teams understand the implications of these developments, Aaron Gilmore at TreyBridge Accountants has rounded up the key messages.
“It was a lot for everyone to digest but the key thing to remember is that it was all positive news,” says Aaron. “Here are all of the points you need to know, which I’ve simplified so that you can immediately see how they will apply to your business.”
Return to work bonus
A new policy is being introduced for employers that successfully return furloughed employees to work. The government will pay a £1,000 bonus to a business for each employee brought back and retained until January 2021 or after.
Each employee needs to be paid at least £520 on average per month in order for the business to receive this bonus.
Giving young people the best chance of getting a job, the Kickstart Scheme applies to 16-24 year olds at risk of long-term unemployment.
If the young person works a minimum of 25 hours per week at your company and is paid at national minimum wage, their wages will be paid by the government for six months.
Employers can apply to be part of the Kickstart scheme from August and it will commence in autumn. There’s no cap on the number of places available.
Employers will be paid £1,000 to take on new trainees. This will support young people to enter fulfilling careers whilst reducing the UK’s skills gap.
For the next six months, employers will be paid £2,000 for each new apprenticeship they create. There is also a brand new £1,500 bonus granted to businesses that hire apprentices aged 25 and over.
£1bn is being invested into the DWP to get people back into quality work and support the unemployed. Meanwhile, the creation of jobs in every region and sector will be accelerated through an additional £5bn of investment projects.
To ensure a green recovery with the environment at its heart, a new £2bn Green Homes Grant will be launched in September for homeowners and landlords. This will be delivered through vouchers that enable green technology to be installed in properties.
Up to £5,000 is available per household, with low income homes having the option to receive the full cost up to a maximum of £10,000. This initiative will also include the decarbonisation of social housing.
Taking immediate effect, there will be no Stamp Duty on the sale of property or land up to the first £500,000 of a transaction until 31st March 2021.
Hospitality and tourism
From Wednesday 15th July 2020 until 12th January 2021, VAT will be reduced from 20% to 5% on food, accommodation and attractions in the hospitality and tourism sectors.
Additionally, during August 2020, everyone in the country will receive an ‘Eat Out to Help Out’ discount. This offers 50% off meals up to a maximum discount of £10 per head, including children. Participating businesses need to register through a website that will launch in mid-July. The funds are then claimed back by the business within five working days.
Aaron at TreyBridge Accountants says: “I believe that every company owner, sole trader and entrepreneur should be given everything they need to succeed. That’s why I offer free advice to all, from longstanding clients to people I’ve never even met before. If you’d like to find out how the Mini Budget will benefit your business, get in touch today on 01482 235575.”