08 July 2020 
Andrea Marshall, Tax Specialist
The Chancellor has just announced the temporary reduction of VAT from 20% to 5% for the eat-in/take-in food, accommodation and attraction sectors. It will be a temporary measure, applying from next Wednesday (15/7) until 12 January 2021.
Some more information has been issued in this Policy Paper.
Temporary VAT cut for food and non-alcoholic drinks – From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.
Temporary VAT cut for accommodation and attractions – From 15 July 2020 to 12 January 2021, to support businesses and jobs, the reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.
The "eat out to helpout" scheme has also been announced. This will run during August. The Government will refund up to 50% (capped at £10 per person) of the cost of a meal eaten on Monday to Wednesday. Business have to register for the scheme and refunds will be made within 5 days of application.
Andrea will provide more analysis as to how this will impact on HE's and commercial activities, as soon as HMRC release more details.
Julia will provide more information about the "Jobs Retention Bonus" (where potentially £1,000 will be paid to employers who take staff back from furlough and pay them a minimum of £520 per month until January), once available.
Other announcements relate to the "Kick-start" scheme and the recruitment of apprentices, job opportunities for young people and the long term unemployed and £1 billion of additional funding for the Dept of Work & Pensions to help the unemployed get into work. Announcements were also made regarding "Greenhomes" grants. Finally, for those of you currently looking to move house stamp duty on house purchases up to £500k has been suspended with immediate effect until 31 March 2021.
