The chancellor is still presenting his budget to MP’s in parliament, so far the highlights for hospitality are:
Furlough
The chancellor has confirmed that the furlough scheme will be extended until the end of September. Presenting details to MPs in parliament Sunak said: “For employees, there will be no change to the terms – they will continue to receive 80% of their salary, for hours not worked, until the scheme ends. As businesses reopen, we’ll ask them to contribute alongside the taxpayer to the cost of paying their employees. Nothing will change until July, when we will ask for a small contribution of just 10% and 20% in August and September.”
Self – Employed
The chancellor committed to help self-employed people that previously had not received any support making by his numbers 600,000 more people eligible. The APPG group ‘Gaps in Support’ estimate the number of self-employed impacted at 3 million. Self-employed people who didn’t previously qualify because they hadn’t all filed a 2019-20 tax return.
Speaking directly to this group Sunak said: “As the tax return deadline has now passed, I can announce today that, provided they filed a tax return by midnight last night, over 600,000 more people, many of whom only became self-employed last year can now claim the fourth and fifth grants.”
New Jobs
Sunak set out that all businesses will be eligible for incentive payments of £3,000 for all new hires of any ages. Making the announcement he told the house: “We’re taking what works to get people into jobs and making it better.”
Restart Grant
The chancellor confirmed his new restart payment of up to £6,000 per premises in April and up to £18,000 for businesses that open up later.
Rates
The current business rates exemption will be extended until the end of June, with a two-thirds discount for the remainder of the tax year.
VAT Rate
Hospitality and tourism will continue to enjoy a 5% reduced rate of VAT for a further six months until September, followed by a new 12.5% rate.
Alcohol Duties
The planned increases in duties for spirits, wine, cider and beer will be cancelled, frozen now for two years.
Training
Focusing on further developing a digital economy the chancellor told the house: “We’re going to help small businesses develop digital skills by giving them free expert training and a 50% discount on new productivity-enhancing software, worth up to £5,000 each.”
FULL DETAILS OF THE 2021 BUDGET FOR HOSPITALITY DIRECT FROM HM TREASURY ARE AVAILABLE HERE
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Hospitality & Catering News: Budget highlights for hospitality. – 3 March 2021 – Budget highlights for hospitality.
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