Small Business Grant Scheme funding
We’ve already touched upon the support available for those organisations which pay little to no business rates, and the start of a new month brings with it the arrival of further updates.
Local authorities have begun issuing letters to those eligible for funding under the Small Business Grant Scheme, which was established to support those that pay little or no business rates because of small business rate relief (SBRR), rural rate relief (RRR) and tapered relief.
The funding is to be in the form of a one-off grant of £10,000 to support those who are eligible in meeting their ongoing business costs. A business can also only claim one £10,000 grant, regardless of whether they occupy multiple premises.
Those who are eligible will be based in England, occupy property and be in receipt of small business rate relief or rural rate relief as of 11 March 2020
In addition, those small businesses whose premises have a rateable value between £12,000 and £15,000 and receive tapered relief, will also qualify.
If you are eligible for this grant, then your local authority will write to you. We are aware that some of our clients begun receiving their letters on 1 April 2020. It will enclose a questionnaire, which is to be completed and returned. The grant will then be paid directly into your bank account.
Local authorities are working from the information they have on their records from 11 March 2020. If you think that your business may be eligible and has not yet received any communications, then you should contact your local authority through their website, as well as your landlord or agent.
Grants are often treated as taxable receipts in a business’ accounts. Although we have seen a copy of the local authority letter and questionnaire, we are not able to confirm whether these will be taxable. As soon as we are, however, made aware, we will update you accordingly.
Grants for retail, hospitality and leisure businesses
Under the Retail and Hospitality Grant Scheme, businesses based in England with a property that has a rateable value of more than £15,000 and less than £51,000 may be eligible for a grant of £25,000.
Properties which will benefit from the relief will be those that are wholly or mainly used as shops, restaurants, cafes, drinking establishments, cinemas and live music venues, or for assembly and leisure as hotels, guest and boarding premises, and self-catering accommodation
As with the above scheme, your local authority should be writing to you now if you are eligible for this grant. There will be a questionnaire for completion and payment should be made directly to your business bank account.
If you don’t receive a letter or have queries about your qualification for the grants, you should contact your local authority through their website
Grants are often treated as taxable receipts in a business’ accounts; however, we are not yet able to confirm whether this grant will be taxable.
As always, we will keep our clients aware of any further information as it’s revealed.
If you have any queries please contact your Champion Advisor.