What You Need To Know About the Restart Grant Schemecreative77
This year’s Spring Budget saw Chancellor Rishi Sunak unveil a promising Restart Grant for eligible businesses affected by the pandemic, which are reopening as lockdown restrictions lift. In this article, we’ll discuss the key details, eligibility, amounts on offer, and method of application, as many business owners consider making an application.
What is it?
The Covid-19 crisis has placed unprecedented pressure on businesses and their cash-flows over the last year or so. Succeeding the now-closed Local Restrictions Support Grant, the Government’s non-repayable Restart Grant scheme is intended to assist 2 strands of sectors that have (or will open) as part of the ‘Roadmap out of Lockdown’.
Who does it cover?
As with past grants, there are clearly defined criteria to meet. Only rate-paying businesses located in England, which were trading on 1st April 2021 may apply. Indicators include having staff on furlough or trading online via Click and Collect.
Your business must belong to one of the following sectors to qualify:
- Personal care
- Non-essential retail.
However, businesses that have become insolvent, removed from the Companies House register, or entered into administration are ineligible. Therefore, previously eligible businesses must contact their Local Authority if any of these 3 criteria apply.
Finally, the total subsidy allowance (previously EU State Aid) for any business must not exceed £10,935,000. The Government’s website discusses the levels for 3 different subsidy allowances in more detail.
How much support is available?
A non-repayable one-time grant of up to £18,000 will be paid to businesses in hospitality, accommodation, leisure, gym, and personal care. A lower rate of up to £6,000 is the ceiling for non-essential retailers; again payable as a one-off grant.
The difference here relates to the purpose of the Restart Grant; to assist businesses when reopening as they need to adhere to Covid-related restrictions such as outside-only dining for restaurants. Non-essential retail businesses are less impacted by set restrictions, so are eligible for a lower amount. However, these figures vary according to the business’ rateable value in effect on 1st April 2021.
How do you apply?
Applications are already open – ideal for businesses who are currently struggling. You will need to submit your application to your local authority as they have been given the funding to distribute and will assess for eligibility regarding the criteria already discussed.
We would encourage you to view the Restart Grant: Guidance for Local Authorities information before applying. This online guide also outlines accountancy issues surrounding this taxable income (page 13) so you can prepare your Self Assessment tax return accordingly.
Different Local Authorities have dedicated web pages on the grant and they’ve been encouraged by the Government to issue funds swiftly. However, there is expected to be a high demand; so applications should be made well before the 30th June 2021 deadline. If successful, payments will be made by 31 July 2021.
We hope that we have answered your questions about the Restart Grant. As providers of tailored accounting services that extend beyond merely ‘doing the books’, we would encourage you to contact us if your business is in one of the eligible sectors and require advice on how it will impact your tax reporting and accounting responsibilities.