Job Retention Bonus
The Coronavirus Job Retention Scheme (CJRS) has supported many businesses so far by protecting over 9 million jobs. The scheme is due to gradually unwind and will be supporting businesses until October. It is beneficial to everyone, including the individual, to be supported going back to work. This includes preventing skills from fading and to maintain strong employment relationships. Therefore, the Government have introduced a new Job Retention Bonus scheme as a reward and an incentive to employers to keep on their furloughed staff.
There will be a new one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed until at least 31 January 2021. Employees must earn above £520 per month on average between the end of the Coronavirus Job Retention Scheme and 31 January 2021. Payments will be made from February 2021 and further details about the bonus will be announced by the end of July 2020.
Eat Out to Help Out – In order to support around 130,000 businesses and to help protect the jobs of their 1.8 million employees, the government will introduce the Eat Out to Help Out scheme to encourage people to return to eating out. This will entitle every diner to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishment. The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including on non-alcoholic drinks) for the entire month of August 2020 across the UK. Participating establishments will be fully reimbursed for the 50% discount.
Temporary VAT cut for food and non-alcoholic drinks – From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.
Temporary VAT cut for accommodation and attractions – From 15 July 2020 to 12 January 2021, to support businesses and jobs, the reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.