Summer Statement 2020: How Will The Announcements Affect You?

Google reviews
July 13, 2020
n

Rishi Sunak delivered the government’s Summer Statement on 8th July. Unsurprisingly, the announcements revolved mostly around the UK’s plans for economic recovery from the ongoing pandemic.

Many of these measures will affect small businesses, limited companies and the self-employed, so it pays to be aware of them. Here, we detail the key announcements that the Chancellor made, and what exactly they mean for you.

 

Cut to Stamp Duty Land Tax

Those who buy residential property between 8th July 2020 and 31st March 2021, in either England or Northern Ireland, will unlikely have to pay Stamp Duty Land Tax (SDLT). The threshold has temporarily risen from £125,000 to £500,000, making approximately 90% of expected new transactions tax-free.

For first-time buyers, this SDLT holiday effectively replaces the relief they’d normally get on purchases under £300,000. Landlords and second home buyers, however, whilst still eligible for the tax cut, will have to pay an additional 3% in SDLT on top of the new rates for any properties worth over £40,000.

 

Reduction in VAT

Another one of the main announcements specifically impacts restaurants, pubs, cafés, takeaways, hotels and B&Bs. The government revealed that their VAT will be reduced from 20% to 5%, starting on 15th July 2020. They plan to cease this on 12th January 2021.

For hotels and B&Bs, the VAT cut applies to accommodation. For attractions like theme parks, cinemas and zoos, it applies to admission. And for eateries, cafés and pubs, it only covers food and non-alcoholic beverages.

 

Introduction of a job retention bonus

As the financial support offered through the furloughing scheme will come to an end in October 2020, the government is instead promoting job retention through a new bonus. Employers will be given this £1,000 payment for each furloughed employee that is brought back into work and stays at least until the end of January 2021.

For businesses to meet the criteria for the bonus, their employee will need to be earning at least £520 per month.

 

Get accounts support with Bright Ideas Accountancy

Whether the Summer Statement announcements impact you or not, dealing with your tax and accounting matters during these unprecedented circumstances might still be a strain. Crunching the numbers and ensuring compliance with ever-changing legislation is not most people’s forte at the best of times – let alone during a period of great uncertainty.

Bright Ideas Accountancy can take this task off your hands, so you can focus on what matters to you. Whether you need help with VAT returns, support with bookkeeping, or financial planning assistance, we’re here for you.

You can get in touch with our supportive team today by calling us on 0161 669 4221, emailing info@biaccountancy.com, or filling in our online contact form.

Summer statement 2020

Resources

Recent Articles

Businesses look to increase home working

Businesses look to increase home working

The number of businesses planning to increase home working for staff has risen according to the latest official figures. In late May 2024, around one in five (19%) businesses said they either had or were intending to raise the number of staff who are working from...

HMRC app helps with student finance applications

HMRC app helps with student finance applications

An app from HMRC which provides information such as your National Insurance number and tax information has been flagged by the taxman to help students completing their A’ Levels this year and planning to head to university in September. Anyone who is applying for...

Want to avoid fines from HMRC? Here’s how

Want to avoid fines from HMRC? Here’s how

No-one likes to pay more to the taxman than they have to, but if you fall foul of HMRC’s rules, you could find yourself paying a penalty, and interest if things are not sorted out quickly. There are various fines you could face from HMRC if you get things wrong, and...

Ready to join us?

Whether you’re a contractor, freelancer, or small business, Bright Ideas can help remove the burden of time-consuming and complex finances. We’ll draw on our years of knowledge and experience earned helping sole traders just like you.

When you choose us, you’ll be assigned a dedicated Account Manager who’ll provide one-on-one support that’s customised to your business. Communication is key, so we’ll always answer your questions or requests as soon as we can. In fact, we offer a same-day response guarantee for emails and calls received before 3pm.

Contact us to get started

Give us a call us or send an email today!

Looking to switch accountants?
We make the transition simple.

Does your current accountant give 1-to-1 support? Are they fast and thorough?
Slap-dash services hold businesses back, so try our experts instead.

Move to an accountancy service that goes the extra mile…

Start the conversation

Let’s make your finances Brighter

Call us Monday to Friday 9am - 5pm

0161 669 4221

Request a call back