On Wednesday 8th July, the Chancellor Rishi Sunak made a speech entitled “Summer Economic Update” where he discussed the plans for the “Second phase in the Government’s economic response to the crisis.” This is the next big step forward to kickstart the economy by injecting an expected £188.7 billion pounds into the economy, the primary focus to encourage consumer spending in retail and leisure businesses.

Further to this Newsletter, your Relationship Manager at d&t will be able to update you on specific details relating to your business in the next few days as the Government publishes the detail behind the announcement. Until then here are the key updates:
Coronavirus Job Retention Scheme (CJRS) and Job Retention Bonus
The CJRS ends in October and facing expected record-high levels of unemployment the Chancellor looked to cushion expected redundancies with the announcement of a Job Retention Bonus (JRB). The new scheme will give employers £1,000 for each previously furloughed employee they retain and keep in employment until January 2021, as long as they are paid at least £520 a month. Further details of the scheme are expected later in July.
Value Added Tax Cut to 5% For Hospitality and Tourism Sectors
The Chancellor outlined a VAT rate cut for the Hospitality and Tourism sectors from 20 per cent to five per cent. The measures relate specifically to food and non-alcoholic drinks and to accommodation and admission to attractions, with further details expected to be published later.

In short, though this will include 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, as well as attractions like cinemas, theme parks and zoos

The VAT rate change comes into effect on Wednesday 15 July 2020 and will be in place temporarily for the next 6 months until 12 January 2021.
Eat Out to Help Out
The “Eat Out to Help Out” scheme will provide a discount to consumers of up to 50% of eat-in meals (up to a total spend of £10 per person), this will be at participating establishments on Mondays, Tuesdays and Wednesdays only for the month of August.

Restaurants, cafes and pubs can sign-up for the scheme on a new website from Monday 13 July 2020.
Stamp Duty Land Tax (SDLT) Holiday
Great news for all those who have been considering buying a new primary residence, the government will be temporarily raising the nil-rate band from £125,000 to £500,000 from now until 31st March 2021.

These rates apply whether you are buying your first home or have owned property before.

You can use the table to work out the SDLT due:
From 8 July 2020 to 31 March 2021 the special rules for first-time buyers are replaced by the reduced rates for additional properties
Kickstart Scheme and Measures to Help People Find Work
In order to support people finding jobs, the Chancellor announced the Kickstart Scheme, which will provide £2 billion to support the creation of “high quality” six-month work placements for 16 to 24-year-olds on Universal Credit and at risk of long-term unemployment.

The Government will provide employers that offer the placements funding equivalent to 100 per cent of the relevant level of the National Minimum Wage (NMW) for 25 hours a week. It will also cover the associated Employer NICs and minimum automatic enrolment pension contributions.
Rishi Sunak also outlined additional measures, including funding for traineeships and employers that hire new apprentices, as well as funding for several careers and job-finding programmes.

The apprenticeships funding will provide £2,000 to employers in England for every apprentice hired under the age of 25 and £1,500 for each newly hired apprentice aged 25 or older. This funding is in addition to schemes already in place to support employers in taking on apprentices.
Superhero Tips!
Captain Development - aka James Thomas
"Marketing is a key aspect of any business and something that can quite often get left behind, to enable you to reengage with your client base it’s integral to be constantly refreshing and adapting to emerging markets. Covid-19 has given many businesses ample time to reflect on new ingenious ways to promote their brand, don’t let yours fall by the wayside."
 - James Thomas, Commercial Manager
Mr Incredirector - aka Dave Galvin
"If you don’t adapt, nothing changes – peddling the same bike faster will only serve to provide for today, tomorrow at best, but will not sustain your business in the long run. You must focus on the short, medium and long-term future. Where you are going, what’s your key goal, then create the plan and monitor your progress. Never be afraid to change. Today I’m sure your business is the very best it can be, but tomorrow is a new day…."
 - Dave Galvin, Managing Director
This email was sent to
You received this email because you are registered with d&t accountants
© 2020 d&t chartered accountants