Page 10 - Town & Around - August 2020
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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.
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