Eat out to help out

*Please note the information in this article may be out of date

Rishi Sunak was splashing the cash about again on Wednesday, with various incentives ranging from Meal Vouchers to VAT cuts, all in an effort to kickstart the UK economy. Listentotaxman readers can avoid listening to the long winded speech and read on to catch the highlights from the Summer Statement.

Tue, 21 Jul 2020

Rishi Sunak was splashing the cash about again on Wednesday, with various incentives ranging from Meal Vouchers to VAT cuts, all in an effort to kickstart the UK economy. Listentotaxman readers can avoid listening to the long winded speech and read on to catch the highlights from the Summer Statement.

We know it's summer, and the last thing you want to be thinking about is Tax, but there are a few important deadlines coming up, which, if missed, might put a dent in your wallet and summer vibe. We are flagging them below.

Firstly to the Chancellor's latest box of tricks:

Coronavirus Job Retention Scheme (JRS)

The Coronavirus Job Retention Scheme is winding down and will gradually cease, with a finish date of October 2020.

A New Job Retention Bonus

A once off bonus of £1,000 per employee, will be paid to employers for bringing back, and retaining, furloughed employees.

These employees must be paid at least £520, on average, per month, from November to the end of January 2021.

Kickstart Scheme

This new scheme will pay employers who employ 16 to 24 year olds (who are in receipt of Universal Credit or at risk of long-term unemployment), for a minimum of 25 hours per week, at the minimum wage. The jobs must be new additional jobs. The scheme will directly pay the employer the wages of these young employees for 6 months, a value of approximately £6,000. Employers can apply to take part from August, with the idea that employees can start in their new jobs by the Autumn. There is no cap on places available.

Traineeships/Apprenticeships

The government will pay employers a cash incentive to take on trainees and hire young people. These new incentives are in addition to the existing £1,000 payment already provided for taking on new 16-18-year-old trainees and certain other apprentices aged over 25.

• Employers will also be paid £2,000 for every newly created apprentice place.  
• A £1,500 payment will be made for taking on apprentices aged over 25 years old.

Universal Credit Supports

Rishi Sunik announced the following to help those on Universal Credit get back to work:

• Doubling the number of career "Back to work" coaches in job centres.
• Extra £1 billion in funding for DWP.
• Extending the Rapid Response Service and expanding the Work and Health Programme.
• Increasing the Flexible Support Fund, which provides help for jobseekers.
• A job-finding support service for those out of work for less than three months, costing £40m.

Infrastructure Investment

Further increased funding for roads, hospitals, towns, schools.

Green Homes Grant

A new grant to be made available from September 2020 to homeowners and landlords who want to make their homes more energy efficient. This grant will be paid in the form of vouchers, which will help support the local trades people. These vouchers will cover at least two thirds of the cost of the renovation measures, up to a value of £5,000 per household. For low income households, the grant will cover up to 100% of the costs, up to the value of £10,000 per household.

Other Green initiatives announced were:

• £1 billion to improve the energy efficiency of public buildings
• Measures to de-carbonise social housing.

Temporary Stamp Duty Cuts

The current Residential Stamp Duty Threshold will be temporarily increased from £125,000 up to £500,000. This Stamp Duty cut will be in place until 31st March 2021 and will take effect from today!

VAT Changes

The Hospitality, Tourism and Leisure sectors will receive a VAT rate cut for 6 months. VAT on food, accommodation, leisure admission fees for cinemas, zoos etc., is cut by 20%, with the new rate being 5%. This VAT rate cut begins next Wednesday, 15th July, and will continue for 6 months until January 12th, 2021. 

Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered. Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected. Expect further guidance from HMRC to be published on the particulars of this new VAT rate in the next few days.

Eat Out to Help Out

For the month of August, everyone will receive a 50% voucher to spend in participating restaurants, cafes and pubs, on their meal.

• The voucher can only be used from Monday to Wednesday.
• Every diner, including children, will be entitled to a 50% discount up to the value of £10 each, at participating restaurants.
• This voucher can be used an unlimited amount of times, on food and non-alcoholic drinks, for the month of August, across the UK.
• Participating establishments can then claim the discount given, back from the government, who have promised they will receive payment within 5 working days.
• To become a participating establishment, businesses need to register online, which they can do from next Mon, the 13th.
• Customers do not need to do anything to claim their discount as this will be automatically applied to the bill, so long as the venue has signed up to the Government's scheme.

Now for those upcoming deadlines! This Monday the 13th is a big one for the Self-employed....

Employees

Tax Credits: Annual Declaration (renewal of tax credits). You must return your Tax Credit pack form to HMRC by the 31st July - you should have received this in the post by now (if you didn't, call the tax credit helpline on 0345 300 3900). According to HMRC 'If you miss the deadline your tax credits payments will stop. You’ll be sent a statement and will have to pay back the tax credits you’ve received since 6th April 2020'.

Employers

Coronavirus Job Retention Scheme: Employers have until the 31st July to claim for furloughed staff payments, for the period ending the 30th June. Missing this dealine may mean employers have to cover the cost of having furloughed staff up to the 30th June -  any wages, Employers NIC's and pension contributions.

Self Employed

13th July is the deadline to claim the first payment under the  Self-Employment Income Support Scheme (SEISS). This covers the time period up to the 13th July.

VAT

HMRC are no longer allowing the deferral of VAT payments. Those due after the 1st July are expected to be paid as normal. Make sure direct debts for VAT are reinstated if payments had been deferred for COVID reasons.

15th July sees the start of the 6 month reduced VAT rate of 5% for the hospitality and tourism industry. Food and non-alcoholic drinks in restaurants, pubs and cafes, as well as hot takeaway food will be covered. Accommodation in hotels and B&Bs and admission to attractions such as theme parks and cinemas also affected.

Capital Gains Tax

Sold a property in the last few months? Don't miss this deadline! Back on the 6th April, HMRC launched it's new online service for reporting and paying capital gains tax on UK property disposals. A few weeks later, in response to the COVID crisis, HMRC advised that late filing penalties will not be charged for disposals completed between 6th April and 30th June 2020. Taxpayers/agents will have up to the 31st July 2020 to submit returns, without incurring a late filing penalty. Normal filing deadlines will start from 1st July 2020, meaning that any taxpayer who files a late return from 1st August 2020 onwards will be charged a late filing penalty.

Restaurant / Cafe / Pub owners

From the 13th July any businesses wishing to take part in the Eat Out to Help Out voucher initiative can register online. The website address has not yet been released by the government so watchout on Listentotaxman news for guidanceon this in the coming days. You must register online in order to offer the 50% reduction to your customers and get the refund from the government.