Restart Grant Scheme: A Complete Guide for Small Businesses
The Restart Grant scheme is administered by local authorities. It is aimed to help around 200,000 small business owners, including pubs, clubs, hotels, restaurants, shops, hair salons and gyms.
Who Is Eligible for a Restart Grant?
Your business may be eligible if it is:
-Based in England
-Rate-paying
-In the non-essential retail, hospitality, accommodation, leisure, personal care or gym sectors
The primary principle of the Restart Grant scheme is to support businesses that offer in-person services, where the main service and activity takes place in a fixed rate paying premises, in the relevant sectors.
How Much Can Your Business Receive Under the Restart Grant Scheme?
Local councils will use their discretion to determine whether businesses meet the eligibility criteria for this grant scheme.
Grants will be available from 1st of April 2021, but you can apply in advance.
Non-Essential Retail Businesses
For the purposes of this scheme, a non essential retail business can be defined as a business that is used mainly or wholly for the purposes of retail sale or hire of goods or services by the public, where the primary purpose of products or services provided are not necessary to the health and well-being of the public.
Local authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
- Businesses offering in person non-essential retail to the general public.
- Businesses that were likely to have been required to cease their retail operation in the January 2021 lockdown.
- Businesses that had retail services restricted during January lockdown.
- Businesses that sell directly to consumers.
For these purposes, the definition of a non-essential retail business should exclude: food retailers, including food markets, supermarkets, convenience stores, corner shops, off licences, breweries, pharmacies, chemists, newsagents, animal rescue centres and boarding facilities, building merchants, petrol stations, vehicle repair and MOT services bicycle shops, taxi and vehicle hire businesses, education providers including tutoring services, banks, building societies and other financial providers, Post Offices, funeral directors, launderettes and dry cleaners, medical practises, veterinary surgeries and pet shops, agricultural supply shops, garden centres, storage and distribution facilities, wholesalers, employment agencies and businesses, office buildings, automatic car washes and mobility support shops. Strand Two: up to £18,000 per hereditament
Hospitality Businesses
For the purposes of this scheme, a hospitality business can be defined as a business whose main function is to provide a venue for the consumption and sell of food and drink.
Local authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
-Businesses offering in person food and drink services to the general public.
-Businesses that provide food and/or drink to be consumed on the premises, including indoors.
For these purposes, the definition of a hospitality retail business should exclude:
food kiosks and businesses whose main service is a takeaway (not applicable to those that have adapted to offer takeaways during periods of restrictions, in alignment with previous Covid-19 Business Grant schemes).
Leisure Businesses
For the purposes of this scheme, a leisure business can be defined as a business that provides opportunities, experiences and facilities, in particular for culture, Recreation, entertainment, celebratory events and days and nights out.
Local authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
-Businesses that may provide in-person intangible experiences in addition to goods
-Businesses that may rely on seasonal labour
-Businesses that may assume particular public safety responsibilities businesses that may operate with irregular hours through day night and weekends
For these purposes, the definition of a leisure business should exclude: all retail businesses, coach tour operators, tour operators and telescopes.
Gyms and Sports Businesses
For the purposes of this scheme, a gym and Sport business can be defined as a commercial or nonprofit establishment where physical exercise or training is conducted on an individual basis or group basis, using exercise equipment or open floor space with or without instruction, or where individual and group sporting, Athletic and physical activities are participated in competitively or recreationally.
Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
-Businesses that offer in person exercise and sport activities to the general public.
-Businesses that open to members of the public paying an entry or membership fee.
-Businesses that require extensive cleaning protocols, which significantly slow down trade..
-Businesses that offer exercise classes or activities, which may mandate space and no masks etc.
For these purposes, the definition of a gym and Sport business should exclude home gyms, home exercise Studios, home sports courts and home sports grounds.
Accommodation Businesses
For the purposes of this scheme, an accommodation business can be defined as a business whose main lodging provision is used for holiday, travel and other purposes.
Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
-Businesses that provide accommodation for ‘away from home’ stays for work or leisure purposes.
-Businesses that provide accommodation for short-term leisure and holiday purposes.
For these purposes, the definition of an accommodation business should exclude private dwellings, education accommodation, residential homes, care homes, residential family centres, beach huts.
Personal Care Businesses
For the purposes of this scheme, a personal care business can be defined as a business which provides a service, treatment or activity for the purposes of personal beauty, hair, grooming, body care and aesthetics, and well-being.
Local Authorities may use the following criteria to assess whether a business is eligible for a grant under this threshold:
-Businesses that deliver in-person holistic, beauty and hair treatments.
-Businesses that provide services such as tattoos and piercings.
-Businesses that offer close-contact services, which are required to deliver the treatment.
-Businesses that offer services, treatments or activities that require social distancing and cleaning protocols, which have led to a reduction in their capacity to deliver personal care services.
For these purposes, the definition of a personal care business should exclude: businesses that only provide personal care goods, rather than services: businesses used solely as training centres for staff, apprentices and others: businesses providing dental services, opticians, audiology services, chiropody, chiropractors, osteopaths and other medical or health services, including services which incorporate personal care services, treatments required by those with disabilities and services relating to mental health.
Which Businesses Are Excluded From the Restart Grant Scheme?
The proposed exclusions in the list at paragraphs 30, 33, 36, 39, 42 and 45 are not intended to be exhaustive and it will be for Local Authorities to determine those cases where eligibility is unclear. Billing authorities will have a good understanding of the licenced premises in their areas and will be readily able to form a view on eligibility in most cases.
Businesses that are not within the ratings system will not be eligible to receive funding under this scheme. businesses that have already received grant payments that equal the maximum permitted subsidy allowances will not be eligible to receive funding. Businesses that are in administration, in solvent or or where a striking off notice has been made, are not eligible for funding under this scheme.
How to Apply for a Restart Grant
In line with the eligibility criteria set out in this guidance, Central Government will fully reimburse Local Authorities. in line with this guidance and the grant offer letter sent to Local Authorities, for the cost of the Grant (using a grant under section 31 of the Local Government Act 2003).
This funding will be a one-off lump sum payment from 1st April 2021. Local Authorities will be responsible for delivering the funding to eligible businesses.
Local Authorities will receive 90% of the estimated grant funding based on an initial Government estimate. When this threshold of funding has been spent, the Government will top-up funding to local authorities if required. To ensure efficiency and a smooth funding delivery process, unnecessary underspend should be avoided where possible.
Local Authorities, subject to local eligibility, will receive funding to meet the cost of payments to businesses within the business rates system based on the number of eligible hereditaments.
Local Authorities are business rate billing authorities in England. They are responsible for making payments to businesses and will receive funding from Government.
As part of their application process for the scheme, all businesses will be required to self-certify that they meet all eligibility criteria.
We are committed to meeting the New Burdens costs to Local Authorities for this scheme. A New Burdens assessment will be completed, and funding then provided to authorities.
It is expected that Local Authorities will provide local businesses with grant funding as soon as possible from 1st April 2021.
The application closure date for this scheme is 30th June 2021 and final payments must be made by 31st July 2021.
Are Restart Grants Taxable?
Grant income received by a business is taxable. The Restart Grant will need to be included as income in the tax return of the business.
Only businesses that make an overall profit once grant income is included will be subject to tax.
Payments made to businesses before 5th April 2021 will fall into the 2020/21 tax year. Payments after 6th April 2021 will fall into the 2021/22 tax year. Unincorporated businesses will be taxed when they receive the grant income.
