- £1,000 bonus given to companies who:
- Have furloughed an employee AND
- That employee is still working for the employer on 31st January 2021 AND
- The employee earns at least the lower earnings NI threshold (£520pm) in the period 1 November 2020 to 31 January 2021.
- The bonus will go to the employer. It will be taxable like any normal income.
VAT for hospitality, accommodation and attractions
- From 15th July 2020 to 12th January 2021 VAT on qualifying supplies will be at 5% instead of 20% – we have no idea why government have chosen mid-month dates – certainly not for simplicity.
- Businesses with programmable tills will need to plan in advance – some supplies could have 3 different VAT rates on one till receipt.
- General Eligibility – the supply of:
- Food and non-alcoholic drinks for on-premises consumption.
- Hot take away food.
- Hot take away non-alcoholic drinks (but not cold take away drinks).
- Sleeping accommodation and associated facilities.
- Pitch fees for caravans and tents and associated facilities.
- So this is relevant to:
- Fish and chip shops.
- Fast food outlets.
- Shops that provide take away coffees, etc.
- Mobile catering.
- Holiday Lets.
- Caravan sites.
- Guest houses.
- Admissions to the following attractions qualify for 5% rate:
- Amusement parks.
- Similar cultural events and facilities.
- If any of the above are eligible for the cultural VAT exemption then the exemption takes precedent.
- It is anticipated that the businesses will keep the reduction in VAT rather than reduce the prices to the consumer. Again depending on your till set up this may take some reprogramming.
- Complexities to consider:
- Flat Rate Scheme – percentages will change TBA (speak to us or monitor HMRC website as no details at the moment).
- Tour Operators Margin Scheme – impact TBA (speak to us or monitor HMRC website as no details at the moment).
- Supplies that straddle the temporary reduction eg Season tickets to attractions – (speak to us).
- Make sure your tills can cope!
Apprenticeships and Traineeships (work placement) grants
- Apprenticeship grants:
- £2,000 for new apprentices aged 16-24.
- £1,500 for new apprentices aged 25 and over.
- The grant is addition to any other incentives received for employing an apprentice.
- An apprenticeship is for at least 1 year.
- Traineeship grants
- £1,000 for new trainees aged between 16-24.
- Traineeships are effectively work placement for between 6 weeks and 6 months.
- For people currently unemployed or working less than 16 hours pw.
- No obligation for the employer to pay a wage.
- Both grants are for new starters hired between 1 August 2020 and 31 January 2021.
Stamp Duty Land Tax Reduction
- Temporary reduction in stamp duty land tax for residential properties – 0% up to £500,000.
|Property Value||New Rate||Old Rate|
|Up to £125,000||0%||0%|
|£500,001 – £925,000||5%||5%|
|£925,000 – £1,500,000||10%||10%|
- Maximum saving £15,000 i.e. purchase a house for £500,000.
- Reduction from 8th July 2020 to 31st March 2021.
- 3% supplement for second houses still applies on all bands.
Eating Out to Help Out
- 50% discount up to £10 per person (inclusive of VAT at 5%) on all food and non alcoholic drinks to consume inside.
- Scheme runs from 3rd August to 31st August 2020.
- Only for sales on Monday, Tuesday and Wednesday.
- Businesses who want to use the scheme must register with HMRC from 13th July 2020 – see for all the detail you will need to provide – https://www.gov.uk/guidance/register-your-establishment-for-the-eat-out-to-help-out-scheme
- Eligible businesses must:
- Sell food for immediate consumption on premises.
- Provide or share dining area for meals to be consumed on site.
- Be registered with the local authority as a food business on 7th July 2020.
- Businesses include:
- Hotel restaurants.
- Restaurants and cafes within tourist attractions, holiday sites and leisure facilities.
- Dining rooms within members’ clubs.
- Workplace and school canteens.
- Dining cars on trains (do they still exist??).
- The discount applies even if the food/drink is consumed outdoors – but must be on your (or shared with other food outlets) premises.
- Not eligible:
- Catering service e.g. weddings.
- Breakfast when sold as part of Bed and Breakfast package – (Breakfast sold separately is eligible).
- Service charge on a bill.
- Where there is more than one diner any discount calculation is worked out on the group as a whole not individually.
- If the establishment offers their own discounts these must be taken off before the Eat Out to Help Out discount is calculated.
- Contact us if you want details of how to calculate the discount.
- Taking away a doggy bag still counts for the discount!