November 04, 2020
Due to the pandemic situation business accounting has taken on a whole new light. The constantly changing grants, loans and government schemes and all the updates that keep pouring in, it has become increasingly difficult for employers to stay abreast with the flurry of change. The government realising that it would put public health before the economy, was forced to impose a series of lockdowns. But the lockdowns have pulled down economic growth even further, to check and provide some relief on these losses, the government has brought out the Local Restrictions Support Grant (LRSG).
What is it?
The grant’s primary focus is to support businesses that require an in-person service directly from the premises of the businesses such as restaurants. The period the business had to be kept closed down would be a minimum of 3 weeks.
What are the eligibility criteria?
For the business to be deemed eligible a few details need to be gone through. Firstly, the property upon which the business rates is being paid needs to be capitalized upon. Here, the government is concerned with businesses that have been closed post the 9th of September 2020 or even on that date. Any closure due to past lockdowns that precede the date will not be legally considered. The minimum window of being closed for a minimum of 3 weeks needs to be met. Also, the business should not have been able to provide its usual in-person specialised service on business premises.
To illustrate the above further, consider local restaurants that were forced to provide takeaways since the social distancing parameters would not allow them to cater to people on their own premises. The businesses that are eligible will get a grant per business however, those that have not paid their business rates may get the grant. Eligibility in such cases would be left to the discretion of the council.
How much do you get?
£1,000 cash grant – Considering that your business is eligible with a property that has less than £51,000 as far as rateable value goes, then you can get this much per week for each of the 3 week period that your business remains closed.
£1,500 cash grant – This applies if your business is eligible and has a rateable value above £1,500 in which case you can get this amount for each of the 3-week period that you remain closed.
To note: this grant would cover an extension over the initial 3 weeks period, for instance, if you are under lockdown for six weeks then amount would be £2000 or £3000 respectively. Also, the rateable value is worked out on what the value of the property was on the first day on which the lockdown restrictions were placed.
It is worthwhile to note that the grants are only given for lockdowns that began on and after the 9th of September 2020.
What if I have not paid business rates? Can I still apply?
Having paid the business rates is one part of the eligibility criteria. However, if your council is ready to accept you for the grant at their discretion, they may do so on the following basis:
How does one apply?
It is best to visit the website of your local council when it comes to applications for the above.
Having the right accountants can be extremely useful in such cases as this would prepare you better and you would know what information you need to provide. When the government for instance had launched the Eat Out to Help out Scheme, many employers were at loss as to how to apply. The same applies to furlough and now the latest addition – the Job or Wage Subsidy Scheme. Hence, having experts to guide you is crucial when it comes to such dynamic changes on the business front.
Doshi Accountants helps its clients not only with accurately filed accounts but also with meeting the right compliances as well as answering their questions. Looking up information over the internet after all, isn’t the most reliable source. Our clients know that they can always reach out to us with their accounts, VAT, payroll or taxation related queries as we are just an email or phone call away. We look after small business accounting as well because for every small business to grow, it needs time dedicated solely to itself. Thus, have someone look into the accounts while you focus on business.