We
have all been paying closer attention to the news in recent times. It does look
like better days are to come, with restaurants and bars been given the green
light to open. While we all are excited and wanting to enjoy ourselves, please
remember to social distance as this is still very vital to our fight against
this virus.
The
Chancellor, Rishi Sunak has pledged great support during these tough times and
has again set the foundation for all of us to come out of this. It will be no
easy job, but together we can do this. Supporting small businesses is vital.
The
Chancellor mentioned a few things in his speech, while some of his policies apply
to Wales, others do not as they are the responsibility of the Welsh Government.
We digest the main points here.
Job
Retention Bonus
The
furlough scheme will be ending in Wales at
the end of October. We are more reliant on the job retention scheme here in
Wales than any other part of the UK. There are about 300,000 people on the furlough
scheme. The Welsh Government has said that it does not have the "financial
fire power" to be able to continue the scheme itself.
The
Chancellor said he would be introducing a new scheme called the Jobs Retention Bonus.
Under the new scheme, firms will be paid £1,000 for each employee they bring
back from furlough and continuously employ through to January
2021 on an average of at least £520 a month.
Eating Out Discount
The
Chancellor has said there will be a 50% discount on food if people eat out in
August on Mondays to Wednesdays. This is to try and get people using
restaurants.
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 venue. There
is not a limit to the amount of times the discount can be used and will be
valid Monday to Wednesday on any eat-in meal (including on non-alcoholic
drinks) for all of August. Participating establishments will be fully
reimbursed for the 50% discount.
Temporary
VAT Cut
If you
supply food and non-alcoholic beverages for consumption on your premises, for
example, a restaurant, café or pub, you’re currently required to charge VAT at
the standard rate of 20%. However, when you make these supplies between 15
July 2020 and 12 January 2021 you will only need to charge 5%
It
will apply to supplies of accommodation and admission to attractions as well.
This will include takeaways, restaurants, cinemas and theme parks.
These
are all in the pilot stages, and more information is to be released in the days
to come. As soon as we know, we will also share the information with you. If
there is something you want to know more about, you can call us on 02920 653995
to discuss. The introduction of these will mean we have a better chance to
finish 2020 on a high.
