Yesterday saw the Chancellor announce the introduction of a range of new measures that are being put in place as part of the government’s plan to help Britain’s economy recover from the current COVID-19 pandemic. Detailed below are highlights from yesterday’s announcement that we believe need the most attention.
Job Retention Bonus:
This bonus is set to reward employers who have used the Coronavirus Job Retention Scheme to furlough employees. For each furloughed employee brought back off of the scheme the employer will receive £1,000 f the following criteria are met:
- The employee must be continuously employed by the employer up until at least 31 January 2021.
- The employee must earn at least £520 per month (above the Lower Earnings Limit) on average for November, December & January.
- The employee must have been furloughed by the claimant at any point and a legitimate claim under the Coronavirus Job Retention Scheme must have been made.
The government is set to cut VAT from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafes and pubs (excluding alcohol). This VAT reduction also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites. And finally, this VAT reduction also applies to attractions such as cinemas, theme parks and zoos. This VAT reduction will be in place from 15th July – 12 January 2021.
Eat Out To Help Out Scheme:
During August, diners will be able to claim 50% off on meals and non-alcoholic drinks, up to £10 per person. Establishments must register to be able to offer their diners this discount and it is only available from Monday through to Wednesdays. This includes restaurants, bars and cafes.
The government will announce further details to support these headlines in due course. As with all previous measures we will be keeping up to date with the latest guidance and ways for you to register/claim for any that apply to you.