Some businesses might jump for joy and some may hide in a corner at the thought of getting back out there and regaining their place in the market. Either way, as we reach what seems to be the end of a very difficult time for a lot of business, the government have outlined many ways businesses can gain a helping hand. In this blog post we have simplified the 4 of the incentives the government is giving small businesses, in the hope it can simplify what could be a minefield of information.
Small businesses exempt from corporation tax increase
The Corporation tax will increase for larger businesses and businesses that have made over a threshold of profits. Don’t fear! Small businesses are exempt from this, any small business with profits £50,000 or less will be exempt from the increase that will start in 2023. Overall, 70% of businesses will actually be exempt from this. A tapered rate will also be introduced for profits above £50,000, so that only businesses with profits of £250,000 or greater will be taxed at the full 25 per cent rate. Overall if you are a small business and don’t make over £50,000 of profit per year you don’t need to worry about this increase in corporation tax.
To know more about the Corporation tax, click this link: https://www.gov.uk/guidance/corporate-tax
Restart Grants for small businesses
Restart grants! The government have put £5 billion towards the restart grants helping the high street. The grants will be helping 700,000 small businesses to get back to business. How much can you get as a small business? For Non-essential retailers businesses can get up to £6,000 per premises. For Gyms, leisure centres, hospitalities and accommodation can get up to £18,000.
The restart grant will be determined by your rateable value. If your rateable value is £15,000 or less, you can claim up to £8,000. If your rateable value is between £15,000 – £51,0000 you can claim up to £12,000. Anything above £51,000 or above of a ratables value you can claim up to £18,000. The local authorities have also been given £425 million in total to give out for any business not eligible but have been affected by the COVID-19 Pandemic, therefore if you aren’t eligible for the main “restart grant” make sure you contact your local council to check if you can receive anything through the extra money.
To read the Budget 2021 path to recovery click here : https://www.gov.uk/government/news/budget-2021-sets-path-for-recovery
Help to Grow grants for Small and Middle sizes businesses
130,000 small to medium businesses will be given a grant to encourage growth within there businesses in different areas. You can apply for a grant or training within Management or digital software.
Help to grow management: Which by the end of the programme participants will develop a tailored business growth plan to lead their business to its full potential. 30,000 places will be available over 3 years. The programme is 90% subsidised by government – however something to keep in mind is that the participants will be charged £750.
Help to grow Digital: Eligible businesses will also be able to get a discount of up to 50% on the costs of approved software, worth up to £5,000. The full details on the businesses and software eligible for the voucher will be published this summer, so keep an eye out! If you are a thinking of using this grant to invest into software, we would gladly help any business looking for bespoke software development. Email firstname.lastname@example.org to find out more about how you could use the help to grow: digital grant and our bespoke software to increase your business potential!
Link to the Help to Grow grant page: https://helptogrow.campaign.gov.uk
Recovery Loan scheme
The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance of up to £10 million per business. This is for once the existing COVID-19 loan schemes closes. The government are providing support as businesses recover and grow following the disruption of the pandemic and the end of the transition period.
There are two types of finance available:
Term loans and overdrafts will be available between £25,001 and £10 million per business.
Invoice finance and asset finance that will be available between £1,000 and £10 million per business.
This loan scheme runs until the end of December 2021 and to be eligible you have to be trading in the UK.
To find out more about the recovery loan scheme click here : https://www.gov.uk/guidance/recovery-loan-scheme
The Government aren’t the only ones giving a helping hand! Charities and Local councils are also giving localised grants to help businesses so make sure you check your local council websites to find out what you can get locally. You can also do a ‘grant search’ on the Grants online website. Click here to search what grants you could apply for in your local area https://www.grantsonline.org.uk/search/grants?f=1
Here at work clever digital we are also doing our bit to help support small businesses, we currently are running an offer that allows businesses to update or set up a new website with no lump sum payments, Simply monthly instalments for bespoke website design. To find out more about the back to business offer we are running click here!