The Mini Budget Summary

July 13th, 2020 | News | By Graham Wingar

Rishi released a ‘Mini Budget’ as we are slowly recovering from the Covid-19 pandemic and I enclose some of the key points for your perusal:

Job Retention Bonus.

This follows on from the current Job retention scheme.

This is a one-off payment of £1,000 to employers that have used the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remains continuously employed until 31 January 2021.

The aim is to provide an incentive to retain employees.

To be eligible, employees will need to:

  • earn at least £520 per month (above the Lower Earnings Limit) on average for November, December and January
  • have been furloughed by you at any point and legitimately claimed for under the Coronavirus Job Retention Scheme
  • have been continuously employed by you up until at least 31 January 2021.

Employers will be able to claim the bonus from February 2021. Full guidance is to be published in the Autumn.


Hospitality and Tourism

In order to try and get people back out and about (sensibly) Rishi has put in place some schemes to promote tourism and the hospitality industry:

  • the Eat Out to Help Out Scheme – during August, diners can get 50% off Monday to Wednesday on meals and non-alcoholic drinks, up to £10 per person, when eating at participating restaurants, bars, cafes and other establishments.

However, the business must apply to registered on the scheme.


  • VAT reduction to 5% – from 15 July until 12 January 2021, the UK government will cut VAT from 20% to 5% on any eat-in or hot takeaway food and drinks from restaurants, cafes and pubs, excluding alcohol.

This VAT reduction also applies to all holiday accommodation in hotels, B&Bs, campsites and caravan sites, as well as attractions like cinemas, theme parks and zoos


Reduction in Stamp duty (England and Northern Ireland only at present)

The ZERO rate band in the Stamp Duty Land Tax (SDLT) in the purchase of a main home has increased from £125,000 to £500,000, from 8 July 2020 to 31 March 2021.

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates.


Kickstart Scheme

This is a new scheme to incentivise employers to take on and train 16-24 years old’s.

It’s a 6 month work placement for people currently on Universal credit (and at risk of long term unemployment) that is funded by the government.

The government will fund unto 25 hours a week at minimum wage and the position must be ‘new’ job. They will also cover ‘some overhead costs’

Employers must apply next month with a view to start employees in Autumn.



They Government will also pay £2,000 for every new apprentice under 25 and £1,500 above 25 that is hired from August to January. These payments are in addition to the existing £1,000 relating to 16 to 18 years olds currently in place.


Self Employment Income support scheme.

The original scheme has been extended until 19th October and eligible individuals will be able to claim for a second instalment from 17th August when the online services will become available.

In order to make a claim, you must confirm that your business has been adversely affected by COVID-19 on or after 14th July 2020.

This grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.

You can claim for the second and final grant even if you did not make a claim for the first grant.

Claiming for employees furloughed on or before 30 June

You need to claim by 31 July for employees furloughed through the Coronavirus Job Retention Scheme (CJRS) for periods ending on or before 30 June.

You will no longer be able to claim the National Insurance (NI) and pension contributions for furloughed employees from 1 August onwards.