Chancellor Rishi Sunak delivered the summer statement (economic update) to the House of Commons earlier today. Below are the key announcements:
Stamp Duty Holiday
The Chancellor has announced a stamp duty holiday where home buyers will not pay stamp duty up to £500,000. This movement is a temporary measure to run until 31 March next year. The primary purpose of this is to assist the UK’s economic recovery and revive the housing market.
VAT reduced to 5% for Hospitality Sectors
VAT will be reduced from 20% to 5% from next Wednesday until 12th January 2021 (six months) on food, accommodation and attractions. No changes to contractors and freelancers.
If you bring back employees and continue to pay them until January 2020, government will give £1,000 bonus to companies. We are yet to know whether Directors are eligible for this. We will keep you posted when more details emerge.
If you create new jobs and employ young person (Age 16-24) government will pay 6 months salary (25 hours @ minimum wage)
If you employ an apprentice, the government will pay £2,000 (for under 25s) and £1500 (for over 25s) for each apprentice.
Green Homes grant
The government will pay at least two-thirds of the cost of home improvements that save energy. Vouchers worth £5,000 and up to £10,000 for poorer families will be made available under this scheme.
Eat out to help out discount
Meals eaten at participating restaurants (no takeaways) in August (from Mondays to Wednesdays), will be 50% off up to a maximum discount of £10 per head for everyone, including children. The government will pay this directly to businesses.
We are still waiting for further details on these announcements and will keep you posted.
Please contact us if you have any questions or require further help with anything covered in this post.