Five ways you can get financial support for your business
If you are a small or medium business ( SME ), HMRC have 5 ways you can access government support to help you invest and grow .
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 .
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-onone 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 .
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 .
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 .
20 | Comment June 2022