Everything You Need To Know About Restart Grants

Restart grants, as the name suggests, are grants that are being introduced by the government to support businesses in England as they start to reopen following the lockdown in England. These are available from April 2021 and offer businesses a one-off grant of up to £18,000. The types of businesses eligible for this grant include those in the hospitality sector, hotels, gyms and salons.

To be eligible for the full grant of £18,000, your business needs to have a rateable value of over £51,000. If the rateable value is between £15,000 and £50,999 you will be eligible for £12,000. And if it is less than £15,000 you will be eligible for a grant payment of £8,000.

Non-essential retail businesses whose income and revenue has been hindered by the effects of lockdown can also apply for up to £6,000 through the scheme. The reason for this being less is that the planned roadmap will allow them to open up much earlier than their counterparts in the hospitality and fitness/tourism sectors.

If your business falls into one of the above sectors and you feel that you can benefit from a restart grant, the first step is to contact your local authority. However, before you do that, you need to make sure that your business is eligible for a restart grant. You may be eligible for the grant if:-

  • Your business operates and is based in England
  • You pay business rates on your property
  • The lockdown from November/December/January has caused your business to close.
  • You have been unable to provide your usual in-person service.

There is also an eligibility checker on the Gov website here if you want to check if your business is eligible before speaking to your local authority. You cannot get funding however if your business is either in administration or has been struck off the register at Companies House. If you believe you are eligible there is a search page here where you can find the website for your local authority.

If your business has already applied for and been approved for a restart grant. The government is expected to start paying out on these grants from the 1st of April onwards. This also applies to pubs that are able to open on the 12th of April or have been able to provide a takeaway service throughout the lockdown. And so if you’re based in the hospitality sector you are going to be eligible for a restart grant if you meet the above conditions.

It’s important to note that the income received from the grant is classed as taxable and when it comes to your self-assessment or end of year assessments, it needs to be included in your tax return. However, it’s important also to note that it’s only if your business makes an overall profit once the grant income has been provided will it then be subject to tax.

If the restart grant payment is made before 5th April this year it will fall into the 2020/21 tax year. However, if the payment is made after this date it will then fall into the 2021/22 tax year. And if your business is unincorporated then you will be taxed as soon as you receive the grant income from your local authority.

In a nutshell, this is everything you need to know about the restart grants that were announced in this year’s budget by the Chancellor. However, if you do have any further questions about the grant or any other schemes introduced by the government in the budget, we may be able to help. Here at D&K Accounting, we are an experienced team of profit-first professionals helping businesses across the country grow.

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