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COVID-19 – Mini Budget Update 2020

COVID-19 Mini Budget Updates 2020

Wednesday, 8th July 2020

Today saw Rishi Sunak announce billions of pounds to help keep our businesses a float and support individuals like ‘soon to be’ home owners, the eater outers and day trippers all with the best intentions to boost our economy due to COVID-19.

What did he announce? – Here are the key points

  • A Job Retention Bonus
  • A reduced 5% VAT rate
  • An increase in the stamp duty threshold
  • Discounts for eating out

Job Retention Bonus

This is a one-off payment of £1,000 per employee, payable to employers that bring employees back from furlough.

Employees must remain continuously employed until 31st January 2021 and earn at least £520 per month, on average for November, December, and January.

The bonus will not be paid until February 2021 due to RTI and data checks.

It is hoped this bonus will provide support to retain employees particularly after the current CJRS ends in October.

More information about this scheme will be available later this month.

Need help with your furlough claims? Not sure if you would be entitled to the Job Retention Bonus?

Onyx has a dedicated Payroll Team who can advise on how much of the Job Retention Bonus you could be entitled to along with ensuring wages are paid in accordance with the national guidelines.

Cashflow management is a must, particularly if you could be in line for a significant bonus. Let us help to ensure your management information is up to date.

Reduced 5% VAT Rate

The reduced VAT rate is effective from 15th July and will run until 12th January 2021.

Applies to any eat-in and hot take-away restaurants, cafes and pubs. It also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites, as well as attractions like cinemas, theme parks and zoos.

Alcohol is not covered by this VAT reduction.

Struggling with the varying VAT rates and clueless on how to work out which rates apply to your sales?

Our experienced VAT Team are ready to help with your VAT Returns.

VAT calculations are not for the faint hearted. Let us do the number crunching and ensure your VAT returns are completed in accordance with the new legislation.

Increased Stamp Duty Threshold

The threshold has been increased from £125,000 to £500,000 and is effective immediately until 31 March 2021.

Applies to the purchase of a main home only within England and Northern Ireland.

About to embark on a house move and need help with your finances. We can help ensure your accounts are completed and management information is up to date for those all-important mortgage applications. Get in touch with us now!

Discounts for Eating Out

For August only we all get to benefit from a 50% discount while eating out, but it’s not a ‘take-away’ discount!

The discount only applies on a Monday, Tuesday and Wednesday and is restricted to a £10 limit per person.

Only participating eateries will be able to offer the discount and applies to dining in only.

Unfortunately, it does not cover alcohol – but helps us to support our local restaurants, bars and cafes.

At Onyx we can help if your business has registered to be part of the scheme. Accounting for discounts, reporting and managing the day to day financials can cause increased business worries.

Let us take the stress out of the financials ensuring your software is ready to process those sales.

GET IN TOUCH WITH ONYX

Need help with your payroll or VAT?

Contact us now or e-mail us at  enquiries@onyxaccountants.co.uk for a FREE no obligation consultation.

Got any questions or queries? Our friendly team of tax specialists are happy to help. Just drop us a line! Call us on 0121 753 5522 or 01902 759 800.

Keep up to date with the latest announcements by visiting our dedicated page https://onyx.accountants/covid/