Chancellor’s Summer Statement highlights

Jul 13, 2020

Last week’s Summer statement from the Chancellor badged as “A Plan for Jobs” announced a number of additional supports and measures aimed at the retention of as many jobs as possible and assistance for the UK hospitality and housing markets. Read our NI Tax Committee Chair’s reaction to the statement and see GOV.UK. 

The key announcements last week were:-  

Jobs retention bonus 

A jobs retention bonus will be paid to employers to cover the period from 1/11/2020 to 31/1/21 – this will comprise a £1,000 bonus per furloughed employee who is returned to work with payments to be made from February 2021. See our news story later on this. 

Stamp duty land tax zero per cent threshold 

The stamp duty land tax residential properties zero per cent threshold in England and NI was raised to £500,000 (from £125,000) from last Wednesday until 31/3/2021. 

The following guidance has been published/updated as a result of this change:- 

VAT on hospitality (food only but not alcohol (eat-in or hot takeaway food from restaurants, cafes and pubs), accommodation (hotels, B&Bs, campsites and caravan sites) and attractions (cinemas, theme parks and zoos)) will be cut from 20% to 5% from Wednesday 15 July 2020 until 12 January 2021.  

HMRC has published a Revenue and Customs Brief setting out the measure in detail. HMRC has also published the following related guidance: VAT on admission charges to attractions; and VAT: reduced rate for hospitality, holiday accommodation and attractions

Eat Out to Help Out Scheme 

In August 2020, the Eat Out to Help Out Scheme will allow diners 50 per cent off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes, and other establishments that have registered.  

Businesses will need to register, and can do so through a website, open today. Each week in August, businesses can then claim the money back, with the funds in their bank account within 5 working days. Detailed guidance on the Eat Out to Help Out scheme, and registration details for restaurants and establishments is now available.