Business Restart Grant
One of the key parts during the March 2021 Budget of the government was the Restart grants. It was created as a response to the COVID-19 pandemic. Businesses that are involved in the hospitality, leisure, and retail industry can greatly benefit from this. In England, there are approximately
700,000 businesses that belong in these industries.
Restart Grant Vs Local Restrictions Support Grant
Table of Contents
There are two schemes that incorporates the Local Restrictions Support Grant. One is directed for businesses that must be closed since they are affected by lockdown restrictions. While the other is aimed for businesses that still remain open. The Restart Grant scheme is designed as a replacement for the LRSGs. Both of these schemes will be closing at the end of March.
How much can you get from the Restart Grant?
The amount of your grant will likely rely on which strand your business is classified into. At the same time, it will also look into the rateable value of your business. The strand is also known as the industry of your business and can create an impact on the level of funding allocated for every threshold. To know more, you can refer to the tables below.
Want to switch to More Than Accountants? You can get an instant quote online by using the form below. In a like for like comparison for services we are up to 70% cheaper than a high street accountant.
Strand One – Premises for Non-essential retail businesses
For these premises, its rateable value will be based on the local rating list established on April 1, 2021. You can also search and verify your business rates valuation here.
| Rateable value | Amount of funding available through the Restart Grant |
|---|---|
| £15,000 or less | £2,667 |
| Over £15,000 and less than £51,000 | £4,000 |
| £51,000 or more | £6,000 |
Strand Two – Hospitality, accommodation, personal care, leisure, and gym business premises
As mentioned above, the rateable value specifies the premises based on the local rating list on April 1, 2021.
| Rateable value | Amount of funding available through the Restart Grant |
|---|---|
| £15,000 or less | £8,000 |
| Over £15,000 and less than £51,000 | £12,000 |
| £51,000 or more | £18,000 |
Hence, if you have a gym, then you belong to Strand Two. If your premises has a rateable value of £22,000, then based on the scheme, you can claim an amount of up to £12,000.
Is my business eligible for a Restart Grant?
Your business is qualified to claim a Restart Grant, as long as the following conditions are met:
- Your premises should be located in England.
- The property that you occupy must be capable of attracting business rates. At the same time, you are not only a business owner but also a ratepayer.
- The government required you to close down your premises for at least 14 days due to the Covid-19 restrictions.
- You were not able to carry out your typical services in person from your premises. For instance, hairdressing would be impossible since you won’t be able to cut your client’s hair remotely.
Your business will not be eligible for claiming the grant if:
- You can still continue doing your business regardless of the lockdown restrictions by obtaining income non-face-to-face activities. For instance, you are selling online or providing delivery service.
- Being a business owner, you have already exceeded the allowed subsidy limit.
- The government did not advice you to close down your business, however, you still decide to close it down on your own accord.
- The local restrictions were implemented for less than 14 days, or you have to close down your business for less than 14 days.
- Your business is not found in the Companies House register anymore because of some reasons. For instance, your business has gone insolvent or turned into the administration.
- Your business is involved in a striking-off notice.
When will be the payout for restart grants?
The local councils will be the ones handling the restart grants. It is expected that the funding will be due from April onwards. The money will then be forwarded to the councils on April. However, it is not yet announced when the funding will be released. Meanwhile, the councils are still generating the processes that will be used for administering the scheme.
Nevertheless, the government still feels optimistic that the economy will soon get back to normal once the restrictions are lifted. So, let’s just hope that the process will be quick. That is why, if you are a business owner, then it is important that you should always check the website of your local council website where your business belongs to. You can find your local council here.
How can a business apply for a Restart Grant?
Your local council will be responsible in administering the grants. Hence, you should frequently visit their website. If you want to know more the application process, then you can always contact their business support department.
Are there any other type of support that can be claimed by small businesses?
Aside from the Restart Grant, the government is also offering other types of support directed to those businesses that are affected by the coronavirus. For instance, the furlough extension.
The Recovery Loan Scheme is something to look forward to.
It was also announced that the new Recovery Loan Scheme will be the replacement for the current government guaranteed loans schemes which is scheduled to end on March 31, 2021.
In this scheme, businesses are permitted to acquire loans between £25,000 and £10 million, with an 80% guarantee offered by the government to the lenders. It is expected that this scheme will start to operate on April 6th and will end on December 31st. Once the scheme is launched, businesses will have the opportunity to apply on any lender as long as it is part of the government’s approved lender network.
However, the process on how to apply and other necessary details have not yet been released. Hence, it is important that you should always visit the Recovery Loan Scheme page on the government’s website.
How about for the self-employed?
The good news is of you are self-employed then you may qualify for the SEISS 4 and 5 grant scheme. On the other hand, self-employed individuals will have the opportunity to defer their VAT and tax payments.
For those who have a total amount due of up to £30,000 in tax from HMRC by the end of January 2021, they have a chance to pay them in instalment basis. This means that the full payment will be delayed until the end of January 2022. If you are taking the government on this, then the interest will began to accrue on the remaining balance from February 1, 2021.
You can also defer your VAT payments. If you want to take this route then you will have to opt-in to the scheme. In other words, you are allowed to make smaller payment for the tax year 2021-2022.
By Daniel Rose
By Daniel Rose
