Page 10 - Town & Around - August 2020

10 Town & Around August 2020 Tel: 01485 540620 email: editor@townandaround.net

THE CHANCELLOR’S SUMMER ECONOMIC UPDATE
By Kathryn Gigg Chartered Accountants, Hunstanton
1. VAT Cut for the Leisure & Tourism Sector AND DON’T FORGET! . . . . . .
The 5% rate will apply from 15 July 2020 to 12 January 2021 for 31 JULY 2020: Despite the fact that the payslip you have received
supplies of on-premises hospitality, hotel & holiday accommodation from HMRC for your second 2019/20 payment on account states that
and admission to certain attractions. it is not due until 31 January 2021, if you can afford to pay it on 31
Each individual business will need to decide whether to pass the July you should do so.
VAT reduction on to customers by reducing its prices. 31 JULY 2020: This is the last day for making a claim under the
The VAT rules for this sector are already complex and as a result Coronavirus Job Retention Scheme for those employees that you had
HMRC has updated several of its VAT Notices to provide more furloughed up to 30 June.
detailed guidance on the application of the change in areas particularly 17 AUGUST 2020: The HMRC Portal for applications for the second
affected by the rate reduction. tranche of the Self Employed Income Support Scheme opens on this
There is also guidance available for the Eat Out to Help Out Scheme day and will remain open until 19 October 2020. Be aware that your
(see point 2 below) which highlights that VAT will be based on the full eligibility will be based upon whether you were adversely affected by
amount of the customer’s bill. This is on the basis that the scheme is Coronavirus on or after 14 July 2020.
a form of payment towards the meal and the value of the meal is 31 AUGUST 2020: Registration for businesses to join the Eat Out to
unchanged. Help Out Scheme opened on 13 July 2020 and will remain open until
This highlights the difficulties that some businesses face in 31 August.
implementing the rate change at short notice. So, please do contact If, having read through the information provided above, you require
us if you need help making the necessary changes to your invoicing advice, please contact either myself or my assistant Nicola Tarry
and accounting systems, e.g. if you need us to guide you through FCA on 01485 534800 or email kate@kathryngigg.co.uk if we can
adding a new VAT rate on Sage, QuickBooks, Xero or your assist in any way.
spreadsheet records. Mrs K H Gigg FCA

Caution: The information listed above is for general guidance only. You should
2. Eat Out to Help Out neither act, nor refrain from action, on the basis of any such
The Eat Out to Help Out Scheme will entitle every diner to a 50% information. You should take appropriate professional advice on your particular
discount of up to £10 per head on their meal at any participating circumstances because the application of laws and regulations will vary
restaurant, pub, café or other eligible establishment. depending on particular circumstances and because laws and regulations
undergo frequent change. Whilst I endeavour to ensure that the information
The discount can be used unlimited times and will be valid Monday contained herein is correct, neither I nor my firm shall be liable in damages
to Wednesday on any eat-in- meal, including non-alcoholic drinks, for (including, without limitation, damages for loss of business or loss of profits)
the month of August. Alcohol & service charges are excluded from arising in contract, tort or otherwise from any information contained in it, or
from any action or decision taken as a result of using any such information.
the offer. © Kathryn Gigg 2020

3. Job Retention Bonus
To help mitigate the potential job loss “cliff edge” when the
Coronavirus Job Retention Scheme ends on 31 October 2020, the new
Job Retention Bonus will be available to employers who have
furloughed employees and subsequently bring them back to work, if
they continue to continuously employ them between 1 November 2020
and 31 January 2021.
In February 2021 such employers will be able to claim a one-off
£1,000 Bonus for those employees who earnt at least £520 per month
on average for each of the above-mentioned 3 months.
Full guidance on the Job Retention Bonus Scheme will not be
available until the Autumn; some key questions still need to be
answered.

4. Kickstart Scheme
The Kickstart Scheme is the designed to help 16-24 year olds through
the creation of high quality 6 month work placements. Employers will
receive up to £6,500 per work placement to cover the individual’s
wages and associated costs (NIC & Pension contributions).
It is not yet known exactly how the scheme will work but it is
expected that there will be an element of employer contribution
towards the cost of employing the individual.
Unfortunately, one condition that will limit the labour market that
employers will be able to draw from is that the potential employee
must be receiving Universal Credit prior to undertaking the work
placement.
Again, there are numerous unanswered questions regarding which
detailed guidance is still needed.

5. Stamp Duty Land Tax Cut (SDLT)
The Nil Rate Band of Residential SDLT is being temporarily increased
from £125,000 to £500,000 from 8 July 2020 to 31 March 2021.