The housing market has been severely affected by the pandemic, with activity and construction both slowing sharply. Moving house also has a multiplier effect on the economy as people tend to spend money decorating and furnishing their new home, with estimates suggesting that doing so drives additional spending worth about 5% of the house value.
In order to support around 130,000 businesses and to help protect the jobs of their 1.8 million employees in the hospitality sector the government will introduce the “Eat Out to Help Out” scheme to encourage people to return to eating out.
The new Kickstart Scheme is a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16-24 who are on Universal Credit and at risk of long-term unemployment.
The Coronavirus Job Retention Scheme (CJRS) has so far supported over one million employers to protect over 9 million jobs. The scheme which started in March will wind down flexibly and gradually supporting businesses until the end of October. There has been pressure to keep the scheme in place but the Chancellor again confirmed the end date.
Many of the changes announced by the Chancellor in his statement on 8 July, such as the temporary Stamp Duty holiday, had already been leaked to the press but as in previous Budgets he still managed to keep a few surprises up his sleeve.
Businesses eligible for the first Self Employment grant must make their claim by Monday 13th July 2020. At the end of May the government announced that the scheme would be extended, with a second and final payment being made in August 2020.
Are you ready for the introduction of the new way of accounting for VAT in the Building and Construction Industry? This comes into force with effect from 1 March 2021.
Despite the coronavirus lockdown HMRC have announced that they will still expect P11d forms reporting expenses and benefits to be submitted by the normal 6 July deadline. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee’s duties. Dispensations from reporting are no longer required.
Chancellor Rishi Sunak announced on 12 May that the CJRS scheme will be extended until the end of October. The scheme will continue in its current form until the end of July with the Government paying 80% of employees wages up to £2,500 a month. For account purposes the amounts received should be credited to a “grants received” account, and this will therefore increase taxable profits of the business.
The Government are still committed to the transitional Brexit period ending on 31 December 2020 and businesses trading with the EU need to make sure they are ready for major changes. If you’re submitting an application for Authorised Economic Operator (AEO) status from 1 June 2020, you must submit them through the EU Customs Trader Portal.
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