April has seen the UK enter a new stage of the lifting of lockdown restrictions – there is light at the end of the tunnel! There is more good news for businesses, as April also marks the introduction of the Government’s latest business support scheme – the Coronavirus Restart Grant. The grant is available to businesses that are allowed to reopen from April, such as those in non-essential retail and hospitality. The amount that businesses are entitled to could rise up to a one-off payment of £18,000, depending on the size and sector of the organization. Whilst not everyone will be eligible to receive the grant, don’t despair. This article will also cover some other support that the Government have made available to businesses that don’t qualify for the Coronavirus Restart Grant. So, read on to find out how you can restart your business.
The Effect Of The Pandemic On Hospitality
Whilst the Coronavirus has affected every industry, perhaps none have felt its affect more than the hospitality and leisure sectors. Restaurants, pubs and gyms were forced to closed for large parts of last year, and even when lockdown restrictions were lifted, the vast majority of these establishments saw a sharp decrease in footfall.
The government has recognised this and has provided these sectors with support throughout the pandemic. As well as the various schemes that every business has had access to (read our articles on these schemes here and here) the hospitality sector is going to benefit from a decrease of VAT to 5% until September this year. From September, VAT will be increased, but only in instalments.
The Coronavirus Restart Grant is the latest effort from the government to ensure that we don’t lose anymore businesses in this sector as we lift lockdown for, what we hope, is the last time.
What Exactly Is The Coronavirus Restart Grant?
The Coronavirus Restart Grant was announced in March’s budget announcement, in which Chancellor Sunak announced that the Government will be making £5 billion available to businesses in the hospitality, accommodation, leisure, personal care sectors. Distribution of the grant will be led by local councils and is said to be available to over 700,000 business owners. This grant will be replacing the Local Restrictions Support Grants.
How much you will be entitled to will depend on the value of the property your business operates on. For non-essential retail the thresholds are as follows:
Value of £15,000 and under are entitled to £2,667.
Value between £15,000 and £51,000 are entitled to £4,000.
Value of £51,000 and over are entitled to £6,000.
If your business falls under the umbrella of hospitality, accommodation, leisure or personal care, your thresholds are as follows:
Value of £15,000 and under are entitled to £8,000.
Value between £15,000 and £51,000 are entitled to £12,000.
Value of £51,000 and over are entitled to £18,000.
Who Is Eligible For The Coronavirus Restart Grant And How Can They Apply?
Any business that operates in any of the aforementioned sectors can apply. However, they must be based in England, be rate-paying, and still be trading as of the 1st of April 2021.
The application process is open now through your local council and you can check your eligibility and be directed to the application process here.
If your business has been negatively affected by the pandemic but it is not eligible for the grant hope is not lost. The Government have made almost £450 million available to local councils to distribute to businesses who fall outside the parameters of the grant, but still need support. Again, to receive this funding, contact your local council, or get in contact with us here at J&P so we can help.
Conclusion
Hopefully, this grant will get many businesses over the finish line of the pandemic. This has been the hardest period ever for most businesses, but support such as the Coronavirus Restart Grant could really make the difference.
Is your business struggling with the implications of the pandemic? Why not contact us so we can help?
At J&P, helping small businesses is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through the Coronavirus crisis and to keep you up to date with all the latest Government guidance and support, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com to receive help managing your business through the end of lockdown.
