Hope for the future or just a gimmick – How did the Great British Summer Savings scheme impact businesses?

As steady rainfall washes away memories of the blazing summer sun, it is clear that the seasons are changing.

With summer over, the Great British Summer Savings scheme no longer enables businesses to offer a reduced rate of VAT on services aimed at children.

It is now worth considering whether the scheme was a helpful or a gimmick and what it could mean for the future of businesses.

Was the Great British Summer Savings scheme a gimmick?

There are plenty of business owners who were less than impressed by the Great British Summer Savings scheme and have been open about referring to it as a gimmick.

The most common criticism is levelled at the scheme’s short nature, meaning that businesses are blessed with a reprieve only to feel the full impact of economic pressures at a time when business is likely to naturally slow.

Having provided relatively short notice of the scheme, there is a view that businesses may not have been able to incorporate it effectively, particularly as many members of the general public were unaware of the savings and thus likely were not influenced by the scheme.

VAT’s complicated handling was also seen as a barrier, with some businesses electing to offer children’s meals for free rather than having to deal with the extra administrative burden.

However, there were many businesses who did see the Great British Summer Savings scheme as a positive.

The relief allowed some to expand their offerings and provide additional children’s meals in an effort to draw in customers they may usually miss.

Many businesses will gladly take any form of relief that is offered and were able to provide customers with lower bills and encourage more spending.

Other businesses used the flexibility they were given on whether to pass along the savings or withhold the additional funds and invest them in the business instead.

Ultimately, it seems that the concept of relief is a welcome one, but the complicated means of implementation and the restrictive nature served as a barrier to some businesses making the most of it.

Will your business’s future be shaped by the Great British Summer Savings scheme?

It is likely that the Government has been paying close attention to the impact of the Great British Summer Savings scheme as well as how it has been received.

With a new Autumn Budget coming on 28 October, the latest Chancellor might draw inspiration from the scheme to find ways to address the small businesses that were overlooked in previous budgets.

Speculation is not helpful at this time and businesses should instead focus on controlling the things that are within their power.

The primary concern must be the next VAT filing, as the impact of the Great British Summer Savings scheme must be accurately recorded to avoid a wave of non-compliance.

Getting the support of an accountant could be beneficial in ensuring that your records are accurate.

Our team can help you to manage your VAT and other tax obligations, supporting you in being more efficient while remaining compliant.

We can also work with you to manage your finances so that the next few months are more approachable, whatever the Autumn Budget may have in store.

For expert support tailored to your circumstances all year round, get in touch with our team.