Today the Chancellor announced the introduction of the Job Retention Bonus, among other measures as part of a £30bn plan to prevent mass unemployment as a result of coronavirus. Here are some of the key updates to the CJRS scheme that might affect your business.
Chancellor Rishi Sunak unveils £30bn plan to save jobs
Mr Sunak is to cut VAT on hospitality as part of a £30bn plan to prevent mass unemployment as the economy is hit by coronavirus. The government will also pay firms a £1000 bonus for every staff member kept on for three months when the furlough scheme ends in October. Mr Sunak also announced a scheme to give 50% off to people dining out in August. The Chancellor warned “hardship lies ahead”, but vowed no one will be left “without hope“, in a statement to MPs. Further to this he told MPs that he will cut VAT on food, accommodation and attractions from 20% to 5% from Wednesday 15th July.
Merely the next stage
Mr Sunak stated that this announcement is merely the next stage “in a fight to recover and rebuild after coronavirus”. He rejected calls to extend the furlough scheme beyond October, saying it would give people “false hope” that they will have a job to return to, and “the longer people are on furlough, the more likely it is their skills could fade”. He conceded that jobs would be lost but said he would “never accept unemployment as an inevitable outcome” of the pandemic. We are likely to hear further details about how the package will be paid for in the Chancellor’s Autumn budget.
Job Retention Bonus
This is a one-off payment of £1000 to employers that have used the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remains continuously employed until 31 January 2021. The bonus will provide additional support to retain employees.
Eligible employees must:
- Earn at least £520 per month (above the Lower Earnings Limit) on average for November, December and January
- Have been furloughed at any point and legitimately claimed for under CJRS
- Have been continuously employed up until at least 31 January 2021.
Updates to CJRS scheme
Claiming for employees furloughed on or before 30 June.
The employer needs to claim by 31 July for employees furloughed through CJRS for periods ending on or before 30 June.
Get ready for changes from 1 August
Employees will no longer be able to use a CJRS grant to cover National Insurance (NI) and pension contributions for furloughed employees from 1 August. You or your clients can submit August claims in advance, from 20 July.
Working out your claims
You or your clients can use HMRC’s online examples and calculator to help work out what you can claim, for claims ending on or before 31 July. From 10 July you will also be able to use these to help you work out claims ending on or before 31 August. Click here to access the calculator.
Correcting mistakes is now easier
You or your clients can now delete a claim online within 72 hours of submitting it. Click here.
The Chancellor also announced these other measures
Eat out to help out scheme
During August, diners can get 50% off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafés and other establishments that have registered.
From 15 July until 12 January 2021, the UK government will cut VAT from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafés and pubs, excluding alcohol. This VAT reduction also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites, as well as attractions like cinemas, theme parks and zoos.
An increase in the Stamp Duty Land Tax (SDLT) threshold in England and Northern Ireland, increasing the threshold under which no SDLT is paid on the purchase of a main home from £125,000 to £500,000, with immediate effect until 31 March 2021. To read more information click here.
Increase in Stamp Duty
An increase in Stamp Duty Land Tax (SDLT) threshold in England and Northern Ireland, increasing the threshold under which no SDLT is paid on the purchase of a main home from £125,000-£500,000, with immediate effect until 31 March 2021.
Investment in home energy saving
Vouchers of up to £5,000 for energy-saving home improvements will be made available as part of a wider £3bn plan to cut emissions.
We hope this information helps you and your business, and will continue to keep you updated on further developments over the coming weeks.
You can read the Chancellor’s latest guidelines in full here.
To find out more visit our website – https://www.prestigebm.co.uk/
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