BUSINESS UPDATE JULY 2020
BUSINESS UPDATE JULY 2020
We are pleased to announce the publication of our latest Business Update Newsletter.
It has been an eventful few months since our last newsletter with the government introducing a host of new measures to help businesses cope with the coronavirus crisis and more recently, to help businesses recover.
We take this opportunity to summarise some of the new initiatives in our Business Update newsletter.
First, an overview the government’s Covid-19 employment support measures, such as the Coronavirus Job Retention Scheme (CJRS), which has been extended until October but with changes to the parameters occurring every month between now and then. These apply to pensions and employer NICs, and the percentage of furloughed employees’ wages being funded by the government. Likewise, the coronavirus large business interruption loan scheme (CLBILS) has been extended from May, a Statutory Sick Pay recovery scheme has been introduced and tax liabilities have been relaxed for reimbursement of employees’ home-office equipment purchases.
In addition, on 8 July, Chancellor Rishi Sunak’s statement ushered in a new stimulus package that may affect individuals in their domestic and business capacities. For business owners, the government’s incentives include the Kickstart Scheme and the Traineeship Payment scheme – both aimed at assisting the 16-24 age bracket, and the Job Retention bonus, to encourage the retention of previously furloughed staff beyond October.
A new Corporate Insolvency and Governance Bill, introduced in June, brings in permanent and temporary solutions to assist failing businesses, protecting them and their supply chains. We also discuss the importance of assessing the viability of a business and whether your accounts should include disclosure about going concern.
For private individuals, a significant raise in the nil-rate band for SDLT, LBTT and LTT (devolved equivalents of Stamp Duty) will affect those who are thinking of buying residential property; a Green Homes Grant encourages homeowners and landlords to invest in energy efficiency measures; and a VAT reduction on food and non-alcoholic beverages in restaurants and pubs ties in with the government’s ‘Eat out to help out’ goals.
For detailed information on all of these new pieces of legislation and incentivising measures, see our July newsletter, which covers all the above and more in considerable detail. And as always do get in touch if any of the issues covered affect you and your finances.