On the 4th January 2021, the Chancellor announced a package of new grants available for businesses to help them through the new Lockdown.
Are you in the Retail, Leisure, Hospitality sector?
If so, you will get a one off grant between £4,000 and £9,000. How much you get depends on the rateable value of your property.
If your rateable value is below £15,000 you will get a £4,000 grant.
If your rateable value is between £15,000 and £51,000 you will get a £6,000 grant.
If your rateable value is over £51,000 you will get a £9,000 grant.
Is there any funding available if you are not in the Retail, Leisure or Hospitality sector and you still had to close down?
Yes there is funding available called the Local Restrictions Support Grant. This grant has been designed for those business who were forced to shut down for at least two weeks due to local restrictions. The amount you will get depends again on your rateable value.
If your rateable value is below £15,000 you will get a £1,344 per month
If your rateable value is between £15,000 and £51,000 you get £2,000 per month.
If your rateable value is over £51,000 you will get a £3,000 per month.
If you do no not pay business rates you may still be eligible for a grant, but this will at your council discretion.
Is there any funding available if you are not in the Retail, Leisure or Hospitality sector and you are still open but have been severely affected due to lockdown?
Yes. The Chancellor has made available £594 million discretionary fund available to help those businesses who are not eligible for the one off top up grant mentioned above.
How can I apply for these grants?
The government has distributed the funds to your local council and so you will first need to find out who your local council is and then go online and apply.
If you are in the Retail, Leisure or Hospitality sector you will get the one off grant depending on your rateable value.
However, the £594 million pound fund is a discretionary fund which means its up to your local council to decide if they should give you the grant or not.
What do I need to make an application?
Make sure you have the following;
Your ID ( Drivers license, passport)
Your business rates account number
All your company details including VAT number
Company bank statements
What other reliefs are available?
In addition to the reliefs mentioned above, the following schemes have changed or been extended...
The furlough scheme has been extended until the end of April 2021. This means you can claim 80% of your employees usual salary for hours not worked, up to a maximum of £2,500 per month.
Employees who were not originally furloughed can now be furloughed providing that they were employed by 30th October 2020.
Employers will need to continue paying Employers National Insurance and pension contributions.
Bounce Back Loan
The bounce back loan scheme is a scheme which allows you to borrow between £2,000 and 25% of your sales up to a maximum of £50,000.
The length of the loan is 6 years and there is no interest, fees or even repayments payable on the first 12 months of the loan.
Before your first repayment, your lender will also give you additional options to extend the loan period, convert to interest only loan or pause your repayments for up to 6 months.
100% of the loan is also backed by up the government.
The scheme is open until the 31st March 2021.
If you deferred your VAT between 20th March and 30th June 2020 then you have until 31st March 2021 to make these payments.
However, you also now have the option to defer the payments even further.
HMRC will be launching this in 2021, where businesses are able to spread their VAT payment into 11 smaller monthly payments. All payments will need to be paid back to HMRC by end of March 2022.