WHAT SMEs NEED TO KNOW
SUMMARY OF THE CHANCELLOR'S ANNOUNCEMENTS RELEVANT TO UK SMEs
8 July 2018
Job Retention Scheme
· The Government will end the furlough scheme at the end of October. No changes. As already planned businesses will begin to cover more of the costs from August onwards.
· There will be no extra support for specific sectors in this particular scheme.
Job Retention Bonus
· An add-on to the Job retention Scheme (furlough). UK employers are to receive a one-off payment of £1000 for each furloughed employee who is still in the business’s employment on 31 January 2021.
· To qualify, employees must also be paid above the minimum earnings limit of £520/month as an average between the end of the furlough scheme (31 October 2020) and 31 January 2021.
· Companies should expect more details soon. Payments will begin from some time in February 2021
Support for the Hospitality and Tourism Industry
· VAT. For food and non-alcoholic drinks, accommodation and visitor attractions, VAT will be cut from 20% to 5% for the period 15 July 2020 to 12 January 2021.
· The Eat to Help Out Scheme will:
o give every customer a 50% discount of up to £10/head on a meal at any participating business.
o The discount can be used as often as wanted and is valid on Monday to Wednesday.
o It is valid for eat-in meals and for non-alcoholic drinks.
o More details on how to register as a participating business are expected to be published today. You can register from the 13 July.
Funding for Employment of Young People and Apprenticeships
· The Kickstart Scheme
o Covers people aged 16 to 24 who are claiming Universal Credit (UC).
o Job placements are to be for a minimum of 6 months.
o The payment will cover 100% of National Minimum Wage plus for 25 hours per week.
o Employers can top up these payments if they choose to do so.
o (Note: the following schemes are not available in Scotland. Scottish Government will be funded to design its own schemes).
o Employers who provide trainees aged between 16 and 24 with work experience will receive £1000 each.
o Employers in England will be paid £2000 for each new apprentice they take on aged under 25. For apprentices aged older than 25 the figure is £1500. These payments are for appointments made between 1 August 2020 and 31 January 2021.
· Green Homes Grant
o (Note: the following schemes are not available in Scotland. The Scottish Government will be funded to design its own schemes)
o Homeowners and landlords will be eligible for grants up to £5000 / household towards improving energy efficiency.
o For some individuals on low incomes the grant may be increased to £10000.
Comment from Business Phoenix
· These grants offer great potential for SMEs and should be exploited wherever possible.
· Further details on each scheme will emerge over the coming days. The Government website provides more details and we will update these as they become available.
Finally, The “Forgotten”. In our case the Not Forgotten.
There remains a large group of businesses who have missed out on Government support. The largest of these are Directors of Limited Companies who were paid through Company dividends. Sadly, the Government has taken the decision not to offer these people a solution. Business Phoenix Ltd will continue to offer all clients 4 hours of free, personalised support in the hope of helping these people and companies to survive and thrive.