New law: Businesses start planning to benefit from Chancellor’s mini-budget announcements
Businesses have started planning how they can benefit from the proposals in the Chancellor’s July mini-budget.
Legal Alert August 2020
This update was published in Legal Alert - August 2020
Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.
The Chancellor’s announcements included the following:
- Ending of the furlough scheme from the end of October, but tempered by a new job retention bonus of £1,000, payable to employers who keep furloughed employees on the payroll until at least 31 January 2021 rather than making them redundant. The employees must earn an average of at least £520 per month between the end of October, when the furlough scheme ends, and the end of January 2021. The bonus will be payable from February 2021.
- ‘Kickstart’ incentives to encourage employers to take on younger employees, trainees and apprentices aged from 16 to 24, including paying the national minimum wage and employers’ national insurance and auto-enrolment contributions for the first six months for each new employee in that age range, and paying bonuses to employers for each new trainee taken on (up to 10) and/or new apprentice.
- A £1bn fund to ‘green’ public buildings.
- A £2bn fund to insulate homes, and reduce their carbon emissions.
- A temporary increase in the threshold at which Stamp Duty is payable when buying a property, from £125,000 to £500,000.
- Allocation of £140m to make the court system more efficient and sustainable.
- Temporarily cutting VAT in the hospitality sector (food, accommodation and attractions) from 20 per cent to 5 per cent until 12 January 2021.
- A temporary ‘Eat Out to Help Out’ campaign, giving diners a 50 per cent discount (up to a maximum of £10 per person) if they eat at certain outlets from Monday to Wednesday during August.
- Businesses affected by the Chancellor’s July mini-budget should start planning how they can benefit from his proposals.
Disclaimer: This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.
Copyright © Atom Content Marketing