Rishi’s Mini Budget

Here are a few of the main points from this weeks mini budget.

Job Retention Bonus

If you bring back someone who was furloughed – and continuously employ them through to January 2021 – you will be paid £1,000 bonus per employee.  The employee must be paid an average of £520 per month to Jan 2021.

Supporting jobs

Kick Start Scheme – for 16-24 year olds at risk of long-term unemployment, you will be paid to create additional good quality jobs, for at least 25 hours a week at NMW for 6 months and cover a % of the employers overheads.  You can apply next week.

Traineeships – Bonus of £1k for employers.

Apprenticeships – Will pay for 6 months, £2k per apprentice; £1.5k for over 24 year olds.

Create Jobs
Stamp duty – Cutting stamp duty, there is no stamp duty up to £500k until March 2021.(England not Wales)

Green grants – £5k to make your homes more green to cover 2/3s of costs.

Protect jobs

Hospitality & Tourism – VAT cut on food, attractions, accommodation, a cut from 20% to 5% from 15th July 2020.

Eat out to help out discount – In August from Monday to Wednesday, 50% off up to £10 pp (inc children).  Businesses can register online and get the money within 5 days.   

Welsh Changes

Immediate changes will come into effect tomorrow (Saturday 11 July) when self-contained holiday accommodation opens.

From Monday, (13 July) if you operate in the any of these industries you will be able to open. This is as long as you follow the guidance about coronavirus-safe ways to operate:

  • Hairdressing salons and barbershops, including mobile hairdressers.
  • Pubs, bars, restaurants and cafes outdoors.
  • Outdoor cinemas.
  • Indoor visitor attractions, but a small number of underground visitor attractions will remain closed for the time being because of the higher risks associated with these environments. The Welsh Government will continue to work with these attractions towards safe re-opening.
  • Places of worship. Faith leaders can begin to gradually resume services when they are ready to do so safely.

Click here for further details  

Flexible Furlough FAQs

Click Here to access the updated spreadsheet you need to complete and send back to payroll@lewisballard.co.uk

Here are some answers to questions you may have.

What information do I need to provide for July payroll if my employees are on flexible furlough?

We will need confirmation from you of the exact number of hours and days that they have actually worked for the whole pay period. Also (if not provided previously) the attached spreadsheet confirming the days and hours they would usually work (contracted hours prior to original furlough date). If this is not known as your employees work on a variable basis then we will base this on the equivalent hours processed based on the furlough pay calculated (higher of the average earnings for 19/20 tax year or same earnings in the same month in previous tax year).

HMRC require the exact number of hours worked when submitting the claim, therefore we will need this confirmed by you, we will be unable to make any assumptions. If you provide us with information to submit in advance and your employees work more than what you have told us then we will need to recalculate your claim and you will have to pay some of the grant back to HMRC. Therefore please only provide us with information and approve the payroll approval request when you have certainty about the hours you need to claim for, this may result in you having to pay employees before the grant is paid to you as the claim may be submitted later in the month.

Do I have to put all of my employees on flexible furlough?

No, you can continue to keep some or all of your employees on full furlough which means you can continue to claim 80% of their usual wage for July, plus associated employer NI and pension. The new scheme is designed to enable you to bring back employees as required, which may mean reduced working hours or reduced staff numbers.

Can I put all of my employees on flexible furlough?

Only employees that have previously been furloughed for at least 3 consecutive weeks, taking place any time between 1 March and 30 June 2020, are eligible to be put on flexible furlough leave.

For the minimum 3 consecutive week period to be completed by 30 June, the last day an employee could have started furlough for the first time was 10 June. Unless you have an employee returning from statutory leave.

Can company directors be put on flexible furlough?

Yes. HMRC guidance states that company directors can continue to be furloughed from 1 July so long as you have previously submitted a claim for them in relation to a furlough period of at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June. If you are looking to utilise flexible furlough, we will need an idea of your usual working hours and confirmation of the hours actually worked. The furlough claim will then be worked out on a pro rata basis. As a company director we appreciate this may be difficult to provide and it may therefore be more appropriate to consider yourself as not furloughed if you are back to running your business as normal.

Is there a minimum time I have to bring my employee back (e.g. 1 day)?

No, employees can work as little or as often as required and furlough grant can be claimed for the difference between the hours they would usually work and the hours actually worked.

Can my employee refuse to come back onto a flexible furlough basis?

This is an HR matter, however some employees could be self-isolating and the Shielding rules are still in place in all parts of the UK until at least the end of July. If an employee is refusing to return to work, you should seek independent HR Advice.

Sunny Weekend Wishes

With the promise of more sunshine and more easing of lock down we can start looking to the future.

We hope to be returning to a new sense of normality next month, (we will confirm the date soon!).

However to protect you and our team from cross infection, we will be continuing to hold virtual meetings for the foreseeable future. These have proved very successful during lock-down.

To limit unnecessary journeys and contact,  we also ask you to continue to send  your records electronically . Please give us ring if you need any help with this.

And finally so that we can maintain safe numbers of people in reception or if you do need to come to our offices for any reason please ring in advance to arrange safe time. If you do turn up unannounced please ring from your car to see if it is safe to come in.

Stay Safe Stay Healthy

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