| Five ways you can get financial support for your business
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| 1. Claim up to £5,000 with the Employment Allowance | ||||
| Employment Allowance is a tax relief which allows eligible businesses to reduce their National Insurance contributions (NICs) bills each year. You can claim this if you’re a business, and your employer Class 1 National Insurance liabilities were less than £100,000 in the previous tax year. | ||||
| Last month we increased the Employment Allowance from £4,000 to £5,000 to further benefit SMEs. | ||||
| That’s a new tax cut worth up to £1,000 for nearly half a million SMEs (30% of all businesses). This includes around 50,000 businesses which will be taken out of paying NICs and the Health and Social Care Levy entirely. | ||||
| Find out more on GOV.UK.
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| 2. Get a discount of up to £5,000 on software, with Help to Grow | ||||
| Help to Grow: Digital is a UK-wide government-backed scheme that aims to help you choose, buy and adopt digital technologies that will help you grow your business. | ||||
| Eligible businesses can receive a 50% discount on buying new software worth up to £5,000 per SME, alongside free impartial advice and guidance about what digital technology is best suited to boost your business performance. | ||||
| The Help to Grow: Management scheme provides small businesses with access to world-class business expertise on everything from leadership and financial management to marketing and digital adoption. This is delivered through leading UK business schools, alongside one-on-one support from a business mentor – and is 90% funded by the government. | ||||
| By the end of the programme you will develop a business growth plan to help you lead and grow your business. Businesses which have previously taken part in the course – including James Lister & Sons, Wilkinson Construction Consultants Ltd and Seacat Services Ltd – strongly recommend the programme to anyone who is trying to grow their business. | ||||
| To be eligible, you must be a UK-based SME, actively trading for at least one year and have a total of between 5 and 249 employees. | ||||
| For more information and to apply, visit Help to Grow on GOV.UK.
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| 3. Get up to half off your business rates | ||||
| From April this year, small retail, hospitality, and leisure businesses can benefit from 50% off their business rates bills. This is worth £1.7 billion for up to 400,000 eligible properties. | ||||
| The business rates multiplier has also been frozen for another year, saving businesses £4.6 billion over the next 5 years. This is used to calculate how much business rates they should pay, and it usually rises with inflation each year. | ||||
| The business rates multipliers for 2022 to 2023 are 49.9 pence for the small business multiplier and 51.2 pence for the standard multiplier. | ||||
| From April 2022 there will be no business rates due on a range of green technology, including solar panels and batteries, whilst eligible heat networks will also receive 100% relief. Together these will save businesses around £200 million over the next five years.
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| 4. Invest in your business with Super-deduction and Annual Investment Allowance | ||||
| To spur business investment, the super-deduction allows companies to cut their tax bill by 25 pence for every £1 they invest in any qualifying machinery and equipment. This can include the purchase of computers, most commercial vehicles and office furniture. | ||||
| The temporary £1 million limit for the Annual Investment Allowance has also been extended to the end of March 2023. This had been due to revert to £200,000 at the start of 2022. The Annual Investment Allowance allows businesses to spend up to £1 million on qualifying business equipment, and deduct in-year its full cost before they calculate their taxable profits. | ||||
| Both of these tax breaks remain available for firms to take advantage of until the end of March 2023, by incurring qualifying expenditure before then.
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| 5. Benefit from the cut in Fuel Duty | ||||
| The government has cut fuel duty on petrol and diesel by 5 pence per litre for 12 months – effective from 23 March 2022. | ||||
| This cut, plus the freeze in fuel duty in 2022 to 2023, represents a £5 billion saving worth around: | ||||
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| To find out what other support may be available for your business, search 'business support' on GOV.UK.
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| HM Revenue and Customs |
May 30 2022