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Restart grants form part of the government’s March 2021 Budget announcement as a response to the COVID-19 pandemic. Aimed specifically at businesses in the retail, leisure and hospitality sector, around 700,000 businesses in England are expected to benefit.

Is the Restart Grant the same as the Local Restrictions Support Grant?

The Local Restrictions Support Grant operated as two schemes; one for businesses required to close due to lockdown restrictions, and those remaining open.

The Restart Grant scheme is set to replace the LRSGs, both of which draw to a close at the end of March.

How much funding do businesses get from the Restart Grant?

How much your grant is worth depends on which ‘strand’ your business belongs to, as well as the rateable value of the business. The strand refers to the sector of the business, and affects the level of funding available in each threshold, as shown in our tables below.

Strand One – Non-essential retail premises

The rateable value of the premises is according to the local rating list on 1st April 2021. You can find and check your business rates valuation online.

Rateable value Amount of funding available through the Restart Grant
£15,000 or less £2,667
Over £15,000 and less than £51,000 £4,000
£51,000 or more £6,000

Strand Two – Hospitality, accommodation, leisure, personal care, and gym business premises

As before, the rateable value refers to the premises according to the local rating list on 1st April 2021.

Rateable value Amount of funding available through the Restart Grant
£15,000 or less £8,000
Over £15,000 and less than £51,000 £12,000
£51,000 or more £18,000

 

So, a gym will fall into Strand Two. In a premises which has a rateable value of £22,000, the maximum amount claimable under the scheme would be £12,000.

Is my business eligible for a Restart Grant?

To be eligible to claim a Restart Grant, a business must:

Restart Grant

Businesses cannot claim the grant if:

When will the restart grants be paid out?

Restart grants are to be administered by local councils, with the funding due to be in place from April onwards. sending the money to councils during April. It’s not yet clear when funding will actually be dished out, with many councils still putting together the processes which will administer the scheme.

However, the government is keen for the economy to get moving again once restrictions are lifted, so hopefully the process will be quick. Business owners should therefore keep an eye on the local council website where their business is based (find your local council website details).

How do I apply for a Restart Grant for my business?

Administering the grants falls to your local council, so keep an eye on their website (or contact their business support department) for information about the application process.

How do I apply for a Restart Grant for my business?

What other support can small businesses claim?

In addition the Restart Grant, the government have refreshed other support available to businesses affected by coronavirus, such as the furlough extension.

The Recovery Loan Scheme is one to look out for, too

The new Recovery Loan Scheme was also announced that will replace the existing government guaranteed loans schemes set to end by 31st March 2021.

It allows businesses to obtain loans of anywhere between £25,000 and £10 million, with the government providing lenders with an 80% guarantee. The scheme is expected to launch on the 6th April and run until the 31st December. Once the scheme is underway, business will have the chance to apply via the government’s approved lender network.

Full details on how to apply haven’t yet been made available, so it’s worth checking the government’s Recovery Loan Scheme page regularly.

And for the self-employed?

Those who are self-employed may also be eligible for part 4 (and 5!) of the SEISS grant scheme. On top of this, there’s the chance for self-employed individuals to defer their tax and VAT payments.

Anyone who owes HMRC up to £30,000 in tax by the 31st January 2021 could pay in instalments, delaying full payment until the 31st January 2022. For those taking the government up on this, interest started to accrue on the outstanding balance from 1st February 2021.

VAT payments can also be deferred. People taking this route will need to opt-in to the scheme which then means they’re free to make smaller payments over the 2021-22 tax year.

Interested to discover more about our range of online accountancy services for low fixed monthly fees? Visit our Who we help page to find the perfect accountancy package for you, or talk to one of our friendly team today. Get in touch by calling 020 3355 4047, or request a free call back.

About The Author

Elizabeth Hughes

A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible.

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