Is your business eligible for Restart grants?
The global pandemic of COVID-19 had an adverse effect on every business domain. However, some of the sectors which were public-oriented have witnessed the worst scenarios.
Non-essential retail, accommodation, hospitality, personal care, and leisure industries have seen a major jolt. Even after the lockdown, these businesses are only permitted to re-open with norms leading to more expenditure and less revenue.
Restart Grant, which was announced in March 2021. The main intention was to help the businesses in the above-mentioned industries and reopen in a COVID-secure way.
Financial consultants in London can guide with the right filing process and manage the funds well.
What is the Restart Grant?
The budget statement on 3rd March 2021 given by Chancellor Rishi Sunak stated that Restart grants would be available to businesses in specific sectors. The grant was specifically prepared to support businesses as they re-opened, giving them extra help because of certain limitations.
The criterion for this grant is the business must be based in England, with the Scottish, Welsh, and Northern Ireland governments providing their own schemes.
The government also stated that the Restart grant would be around £5 billion in total for the eligible businesses around the country. It also replaced different other government support like Local Restriction Support Grant. It is estimated that 700,000 businesses are eligible for the Restart payment.
Being a COVID support grant, the restart payments need not be repaid. But this will be included in business profits and thus be subjected to tax.
What Businesses Are Eligible for the Restart Grant?
Restart grant is prepared in order to support certain sectors. Businesses that are closed for prolonged periods and have been facing restrictions while opening. For example, restaurants which were only allowed to serve food outside and to a small group of people at each table.
Here is the list of industries included in the Restart government support:
Non-essential retail
Accommodation
Leisure
Hospitality
Personal care
The business must also meet the following criteria:
Based in England
Trading on 1 April 2021
Rate-paying
There are multiple other aspects as well. To qualify as a trading business, it must be operating online. If the business had furloughed their staff or closed and now waiting to reopen will also be considered as trading.
In contrast, businesses that are removed from the Companies House register or were insolvent or in administration will not be considered as trading.
You will need to declare that your business has been adversely affected by the COVID-19 pandemic, and have records to document this. You may be asked to prove your eligibility at a later date by either the local authority or HMRC.
Apart from it, the business needs to declare that it has been adversely affected by the COVID-19 pandemic.
How Much Will I Receive?
The amount business receives under the government support scheme depends on types of business and relatable values.
Non-essential retail is eligible for a less amount because re-opening doesn’t involve the exact limitations on trade.
Up to £6,000 per premises payment is available for those in the non-essential retail sector, and up to £18,000 payment for the other eligible sectors.
These amounts are payable as a single, one-off payment. While these are the basic known, it’s always better to consult financial consultants in London and get indepth information related to the grant.
It is always better to hire the small business accountant in London. They can give expert advices and also help you to make the right decisions as well as efficiently register the business for grants.
BS Associate is one of the trusted financial consultants in London who can help with the right and effective solutions. So, next time you are in need of the services we can help you.
0