Following Wednesday's Budget announcement Corporate Partner, Duncan Leslie, hosted a panel discussion with Head of Tax, John Endacott, Tax Directors Steve Ashworth and Heather Britton and…
Restart Grant Scheme – guidance to businesses
Guidance has been published on The Restart Grant Scheme, the scheme first announced pre-Budget.
Judging by the level of enquiries I have had for details since I drafted the first blog on the scheme, I anticipate this guidance will be of interest to colleagues and their clients.
Initially I found “Check if you are eligible for a coronavirus Restart Grant” but it is a bit lacking in detail… Fortunately there is also “Guidance for Local Authorities” to supplement this.
|Your business may be eligible if it:
is based in England
is in the non-essential retail, hospitality, accommodation, leisure, personal care or gym sectors
was trading on 1 April 2020 (see note below)
|You cannot get funding if your business:
is in administration, insolvent or has been struck off the Companies House register
has exceeded the permitted subsidy allowance (This appears to be £10.935m – see link)
The reference to 1 April 2020 is taken for eligibility criteria set out in “Check out if you are eligible…”. However, the guidance to Local Authorities has a statement at para 23 that: “Businesses must have been trading on 1 April 2021 to be eligible to receive funding under this scheme”, we will update when we have clarity.
What can a business can get?
The Restart Grant is a one-off grant.
|Grant||Interaction with LRSG||Administered by|
|Hospitality, accommodation, leisure, personal care and gyms||up to £18,000 per premises, depending on their rateable value.
|The Restart Grant scheme will replace the monthly Local Restrictions Support Grant (Closed) and Local Restrictions Support Grant (Open), which will both close at the end of March||Local Authorities (commencing April).
|Non-essential retail businesses||up to £6,000 per premises (to help them reopen and start trading safely)
Grant levels per rateable value:
|Type of business||Rateable value|
|£15k or under||>£15k, < £51k||>£51k|
|Hospitality, accommodation, leisure, personal care and gyms – grant of:||£8,000||£12,000||£18,000|
|Non-essential retail businesses||£2,667||£,4000||£6,000|
Annexe C of the Local Authority guidance gives an (indicative) list of business that fall into each sector.
How to apply
The grant will be administered by Local Authorities. From our reading of Local Authority websites the impression I was given was that they anticipated this replacing the LRSG with the same eligibility criteria so if you have been in receipt of LRSG payment should be automatic – but I would advise all businesses to check their local council’s website to find out how to apply (Find the website for your local council.)
I would leave it few days to look at Local Authority websites as I suspect guidance has only just issued to them.
Funding will be made available to all Local Authorities from 1 April 2021.
Additional Restrictions Grant (ARG)
As advised previously Local Authorities will get an extra £425 million to distribute in grants to businesses not eligible for the restart grants but are still suffering because of Covid restrictions. There is far more discretion here as how these funds are allocated – so again I would suggest you sign up to receive news feeds from the Local Authorities where you have business premises.