Summer Economic Update 2020

The Chancellor, Rishi Sunak, delivered his ‘Summer Economic Update’ on Wednesday 11 March 2020, which sets out the UK Government’s masterplan to bounce back from the Covid-19 pandemic as lockdown starts to ease and businesses look to reopen.

Various incentives from VAT cuts to bonuses for job retentions were all announced to kickstart the UK economy.

ICS Accounting’s highlights from the Chancellors latest announcement are as follows:

CJRS Bonus – The Coronavirus Job Retention Scheme is a bonus to reward and incentivise employers who continue to employ their furloughed employees through to 31 January 2021. Employees must earn above the National Insurance lower earnings threshold.

Kick-start Scheme – Directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment. The government will pay employers up to £6,500 per job in wage and business costs.

Apprenticeships – £2,000 payment per apprenticeship, for businesses that take on new apprentices (£1500 payment for those over 25)

Traineeships – The government will pay employers £1,000 to take on trainees.

Green Homes Grant – Homeowners & landlords can apply for vouchers to make their homes more energy-efficient. The government will cover two-thirds of the total cost, up to £5,000 or 100% for low-income households.

Stamp Duty – Stamp Duty Land Tax lower threshold (0% band) increased from ££125,000 to £500,000.

Leisure Industry – VAT on hospitality and tourism will be reduced from 20% to 5% between 15th July 2020 and 12th January 2021.

Eat Out to Help Out Discount – Meals eaten at participating business throughout August, Monday to Wednesday, will be given 50% off, up to a maximum discount of £10 per head for everyone, including children.

If you require any more information or have any questions regarding the Summer Economic Update 2020, please call us on 0800 288 9022 or email info@icsuk.com.