Setting up multiple companies to separate business interests can seem very straight forward. There are however important considerations. We explore the implications of owning too many companies.
Restart grant – could your business be eligible?
14 April 2021
COVID-19, Raising Finance
I imagine we are all excited and relieved that the economy has started to open back up and we’re beginning to see the green shoots of a return to a more normal life. Monday 12 April saw the re-opening in England of non-essential shops, gyms, hairdressers and many other businesses, which was great news.
However those businesses have had many months where they’ve been unable to trade at all or their ability to trade has been limited. In order to support such businesses with expenses they may need to incur so that they can reopen safely the government is awarding grants to eligible businesses, which can be claimed via your local council’s website.
Which businesses qualify?
Businesses that meet the following conditions will qualify for the grant:
- They are based in England
- They are rate-paying
- They operate in the non-essential retail, hospitality, accommodation, leisure, personal care or gym sectors
- They were trading on 1 April 2021
You will be excluded from the grant if your business is in administration, insolvent or has been struck off the Companies House register, or if you have exceeded the permitted subsidy allowance.
Subsidy allowance
This scheme is covered by 3 subsidy allowances:
- Small Amounts of Financial Assistance Allowance – you’re allowed up to £335,000 (subject to exchange rates) over any period of 3 years
- COVID-19 Business Grant Allowance – you’re allowed up to £1,600,000
- COVID-19 Business Grant Special Allowance – if you have reached your limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, you may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are met
- Grants under these 3 allowances can be combined for a potential total allowance of up to £10,935,000 (subject to exchange rates).
How much is the restart grant?
For businesses in the non-essential retail sector there is a one-off grant of up to £6,000. For businesses in the hospitality, accommodation, leisure, personal care and gym sectors there is a one-off grant of up to £18,000. The amount you receive will be dependent on the rateable value of your property.
How do I apply?
If you think your business may be eligible go to your local council website and search for ‘restart grant’. That should give you all the information you’ll need to apply for the grant when the scheme opens in your area.
The content in this blog is correct as at 14/04/2021. See terms and conditions.
