OFF TO A GOOD RESTART
There are a number of grants and support schemes available from the government for businesses affected by restrictions and planning to restart. These include:
FURLOUGH SCHEME
Now running until the end of September, the furlough scheme pays 80 per cent of the salary of staff when they can’t work (up to £2,500 a month). Employers must pay national insurance and pension contributions. From July, the government scheme will contribute 70 per cent and employers will have to pay 10 per cent for hours not worked. In August and September the government will pay 60 per cent and employers 20 per cent.
(ARG) ADDITIONAL RESTRICTIONS GRANT
These grants are distributed by councils to businesses that are severely impacted by restrictions but not forced to close. Each council can determine which businesses to target and determine the amount of funding from the ARG. There is more detail on how to apply here: gov.uk/ guidance/check-if-youre-eligible-forthe-coronavirus-additionalrestrictions-grant
LOCAL RESTRICTIONS SUPPORT GRANT
The deadline for this grant is March 31, and eligible businesses receive a grant for every 14-day period that they are closed. Businesses that have to shut and pay business rates are eligible for this support and there is more detail here: gov.uk/guidance/ check-if-youre-eligible-for-thecoronavirus-local-restrictionssupport-grant-for-closedbusinesses#application-deadline
VAT AT FIVE PER CENT
VAT for hospitality (but not alcoholic drinks), admission to certain types of attractions and for hotels remains at five per cent (down from 20 per cent) until September 30, 2021, and a new reduced VAT rate of 12.5 per cent will be introduced for the following six months until March 31, 2022.
SEISS
Self-employed people subject to certain eligibility requirements can apply for grants of up to £2,500 a month or 80 per cent of profits, with applications for grant four opening in April. A fifth grant will cover June to August, the Chancellor has announced.
RESTART GRANTS
Rishi Sunak (right) has announced restart grants for businesses of up to £18,000 each for the largest premises. Further details will come out in the next few weeks ahead of an April launch, but it is likely that grant levels will be based on business rates, with nonessential retail businesses receiving grants of up to £6,000 per unit, while qualifying hospitality and leisure properties with a rateable value of £15,000 or less will receive a one-off grant of £8,000. Above this level, qualifying hospitality and leisure properties will receive grants of between £12,000 and £18,000.