This month the "Mini Budget" was issued by Rishi Sunak.
Our blog post here
details the key measures which will affect our clients.
Some of these may be gimmicks but overall we hope that they will help support jobs and the hospitality sector.
The difficulty is finding the middle ground when there are people who have suffered virtually no negative financial effects due to C-19, whereas others have suffered so badly that their livelihoods may not recover for many years.
Will the "Meal Deal" persuade those who feel eating out in restaurants is unsafe, to actually go out? For those in the hospitality industry - look out on Monday 13th for Government information on how to sign up for the 50% scheme which happens throughout August.
Furlough was complicated, Flexible furlough is even more complicated, and now the Job Retention Bonus will add another level of disclosure to payroll - it will be interesting to see if this bonus helps keep furloughed employees in employment or whether businesses with limited or no income will make staff redundant, regardless.
I do however like the green innovations that were declared. Moore Accountancy are big promoters of community recycling and other green initiatives, so support for homeowners and landlords to install energy efficient measures is a positive.
Finally, with the reduction in VAT from 20% to 5% for supplies of food and non alcoholic drinks from cafes, bars and similar premises; it is important that relevant businesses ensure their till software is updated, and their menus are amended if pricing is changed.
For VAT registered business owners who have travel and subsistence claims, you will need to check that the VAT is claimed at the correct rate on your bookkeeping software or spreadsheets.
Whilst these short term measures should contribute to a boost to the economy, it will be interesting to see what the Autumn Statement holds as a blueprint for a real economic plan for our country, and of course how the Chancellor expects us to pay for everything.
Separately, businesses eligible for the first Self Employment Income Support Grant (SEISS) v1 (March to May 20), must make their claim online by Monday 13/07/20
. The next installment will be open in August for claims.
If you have missed any of our previous newsletters, then our website has a backlog of them here.