Mini budget 2020: What it means for your business

The last few months has seen our personal and professional lives thrown upside down. Many individuals and businesses have had to go back to basics to counteract the Covid-19 pandemic and subsequent lockdown. With measures now easing, the nation is busy adjusting to a new normal, and adapting their businesses to get back on track once more.

To aid recovery Chancellor of the Exchequer Rishi Sunak recently announced a ‘mini budget’. The budget saw many changes for both businesses and individuals, but what do these mean for you?

It’ll be easier to get back to business

At the present time, striking the right balance between getting back to work and supporting your employees isn’t easy. Many businesses still have some or all of their workforce furloughed but as per the Chancellor’s announcement, bringing employees back to work just got less risky.

Companies will receive a £1,000 job retention bonus for every employee brought back to work from furlough. The bonus is designed to prevent redundancies and support businesses in every industry sector.

They’ll be more opportunities for young talent

Lockdown saw a record number of claims for Universal Credit and other benefits, but for those aged between 16 and 24, there are new employment hopes for the future.

Under the recently announced Kickstart Scheme, the government will fund 100% of the wages of young people hired by businesses. The scheme, which is worth £2 billion, will pay young workers the minimum wage for 25 hours per week and is open to all employers. Employers can also choose to top up these wages to facilitate full time contracts.

The scheme is great news for young workers who will be given the paid experience needed to boost their employability. It’s also excellent news for employers who can create more opportunities for young talent, even during these difficult, uncertain times.

Selected businesses will have less VAT to pay

Businesses in the hospitality and tourism industries have been hit particularly hard by the pandemic. To aid recovery, a VAT cut has been introduced on food, non-alcoholic drinks, attractions and accommodation. VAT has been reduced from 20% to just 5%, a discount which represents a £4 billion saving for businesses in these sectors.

It’s not just businesses that will benefit from the hospitality bailout. Individuals will be given discounts of around 50% when they dine at participating businesses under the government’s ‘eat out to help out’ plan.

For further advice on money matters in the post pandemic business community, contact our experienced accountants for support.

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