As the country was plunged into another coronavirus lockdown on 6th January 2021, which is currently expected to last until at least the end of February, consumer-facing businesses were once again left terrified for their business’s survival.
Businesses in the retail, leisure and hospitality sectors have endured months of closure since the first national lockdown in March 2020, followed by a cycle of limited time reopening’s, causing a huge drop in profits.
It’s clear that help is needed to get through this lockdown and to the better days of Spring we’re all wishing for. Chancellor Rishi Sunak has responded by announcing a one-off grant worth up to £9,000 to support these businesses. The total package, costing an estimated £4.6 billion, is expected to assist more than 600,000 businesses who are unable to operate due to the latest lockdown restrictions.
In this blog, we’ll be taking a look at who is eligible and how to apply.
How Much Is My Business Entitled To?
If your business is in the retail, leisure or hospitality sector which has been legally required to close in the latest lockdown, and cannot operate effectively remotely, then you are eligible for a grant.
The amount of the grant to be offered will be based on the level of business rates typically paid by each business as outlined in the table below.
|Rateable Business Value||Claim|
|£15,000 or less||Up to £4,000|
|Between £15,000 and £51,000||Up to £6,000|
|More than £51,000||Up to £9,000|
How Do I Apply for a Grant?
All businesses need to apply through their local authorities. Click here to be taken to the government website to find the right local authority to contact to submit your application.
What If My Business Is Not Eligible But I Still Need Financial Support?
An additional £594 million is also being made available for local authorities and the devolved administrations to support businesses who may not be eligible for the grants.
From this discretionary fund, the Scottish government will receive £375 million, the Welsh government £227 million and Northern Ireland £127 million.
As with the one-off top up grant, you should contact your local authority to ask for support and see how much you might be eligible for.
Are There Any Other Options Available To Support My Business Through Lockdown?
Yes, the Coronavirus Job Retention scheme, otherwise known as the furlough scheme, has been extended until April and the 100% business rates relief measure is in place until the end of March.
Additionally, if you claim one of the one-off top up grants, you will still be eligible for other business support measures in place such as grants worth up to £3,000 for closed businesses and grants up to £2,100 each month for businesses who have been impacted, once they reopen.
How Can We Help?
As the stresses of 2020 have followed us into 2021, we understand that it continues to be a stressful and uncertain time to be a business owner. Here at Red Ark, we pride ourselves on the expert and individualised service we can deliver, with a personal touch. Let your payroll be one less thing for you to worry about.
Want to find out more? Our friendly, knowledgeable team are on hand ready to help talk you through the best options for you and your business. Contact us today to discuss your payroll solutions and what we can do for you.