The focus of the COVID-19 Grants being administered by the Council from April 2021 is now on restarting businesses as the restrictions ease.
Alongside the mandatory Restart Grants which assist eligible businesses on the council’s rating list, is the discretionary Additional Restrictions Grant which supports businesses who are not eligible for a Restart Grant.
Mansfield District Council has worked alongside other Local Authorities in the Nottinghamshire area to devise the framework of a discretionary Additional Restriction Grant scheme (subject to local variations).
The Additional Restriction Grant is focussed on hospitality, accommodation and leisure sectors and businesses in the direct supply chain for these sectors along with takeaways within the Mansfield BID area and taxi drivers/driving instructors permanently residing in the Mansfield District Council area.
The scheme is no longer based on which businesses are open or closed and is focussed on the sector that the business operates in.
How much funding will be provided to businesses?
An eligible business may receive (subject to the availability of funds) a one off payment if the business wholly occupies a property with a rateable value (or if there is no rateable value, a proxy such as annual business premises rent) as follows:
- £2,000* for a Rateable Value £15,000 and under
- £4,000* for a Rateable Value of over £15,000 and below £51,000
- £6,000* for a Rateable Value £51,000 and over
If you do not wholly occupy a property listed for business rates (i.e. not registered/liable for business rates) and are not charged a fixed business property rent you may be entitled to a fixed grant of £1,500*
Taxi drivers are eligible to apply for a £750 grant under this scheme.
*The rate of grants payable have been amended for the third round of applications due to a reduction in Government funding.
- Grant income received by a business is taxable. The Additional Restriction 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. Unincorporated businesses will be taxed when they receive the grant income.
New subsidy allowances were established for the COVID-19 business grants schemes with effect from 4 March 2021, on the basis of the principles set out in Article 3.4 of the Trade and Cooperation Agreement (TCA) with the EU. The new allowances replace what was previously called State Aid but still limit the amount of aid that businesses are allowed to receive.
The new subsidy control rules below are applied to applicants at the level of economic actor, which is defined as an entity or a group of entities constituting a single economic entity regardless of its legal status, that is engaged in an economic activity by offering goods or services on a market.
There are three subsidy allowances set out below: Small Amounts of Financial Assistance Allowance, the COVID-19 Business Grant Allowance and the COVID-19 Business Grant Special Allowance.
Important! - Before starting the application process, please ensure that you have to hand the total cumulative amount of state aid/subsidy received to date as you will be asked about this during the application process.
Small Amounts of Financial Assistance Allowance
Grants may be paid in accordance with Article 3.2(4) of the TCA, which enables an applicant to receive up to a maximum level of subsidy without engaging Chapter 3 of the TCA. This allowance is 325,000 Special Drawing Rights, to a single economic actor over any period of three fiscal years, which is the equivalent of £335,000 as at 2 March 2021. An applicant may elect not to receive grants under the Small Amounts of Financial Assistance Allowance and instead receive grants only using the below allowances available under this scheme.
COVID-19 Business Grant Allowance
Where the Small Amounts of Financial Assistance Allowance has been reached, grants may be paid in compliance with the Principles set out in Article 3.4 of the TCA and in compliance with Article 3.2(3) of the TCA under the COVID-19 Business Grant Allowance (subsidies granted on a temporary basis to respond to a national or global economic emergency). For the purposes of these scheme rules, this allowance is £1,600,000 per single economic actor. This allowance includes any grants previously received under the COVID-19 business grant schemes and any State aid previously received under Section 3.1 of the European Commission’s Temporary Framework across any other UK scheme. This may be combined with the Small Amounts of Financial Assistance Allowance to equal £1,935,000 (subject to the exact amount applicable under the Small Amounts of Financial Assistance Allowance using the Special Drawing Right calculator).
COVID-19 Business Grant Special Allowance (uncovered fixed costs)
Where an applicant has reached its limit under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, it may be able to access a further allowance of funding under these scheme rules of up to £9,000,000 per single economic actor, provided the following conditions are met:
- The Special Allowance covers only the applicant’s uncovered fixed costs incurred during the period between 1 March 2020 and 31 March 2022, including such costs incurred in any part of that period (‘eligible period’);
- Applicants must demonstrate a decline in turnover during the eligible period of at least 30% compared to the same period in 2019. The calculation of losses will be based on audited accounts or official statutory accounts filed at Companies House, or approved accounts submitted to HMRC which includes information on the applicant’s profit and loss;
- ‘Uncovered fixed costs’ means fixed costs not otherwise covered by profit, insurance or other subsidies;
- The grant payment must not exceed 70% of the applicant’s uncovered fixed costs, except for micro and small enterprises (for the purposes of this scheme defined as less than 50 employees and less than £9,000,000 of annual turnover and/or annual balance sheet), where the grant payment must not exceed 90% of the uncovered fixed costs;
- Grant payments under this allowance must not exceed £9,000,000 per single economic actor. This allowance includes any grants previously received in accordance with Section 3.12 of the European Commission’s Temporary Framework; all figures used must be gross, that is, before any deduction of tax or other charge;
- Grants provided under this allowance shall not be cumulated with other subsidies for the same costs.
An applicant must be able to provide the necessary documentation to demonstrate it is eligible for funding under this COVID-19 Business Grant Special Allowance. Local Authorities are required to verify that an applicant can meet all the criteria set out under this allowance before providing further funding under this allowance. Applicants will be asked to provide a full breakdown of all state aid/subsidy received as well as proof that they meet the conditions of entitlement to aid for uncovered fixed costs.
Grants provided in excess of the Small Amounts of Financial Assistance Allowance may not be granted to applicants that were defined as an ‘undertaking in difficulty’ on 31 December 2019. In derogation to the above, grants can be granted to micro or small enterprises that were already in difficulty on 31 December 2019 provided that they are not subject to collective insolvency proceedings.
For the avoidance of doubt, grants under the Small Amounts of Financial Assistance Allowance, the COVID-19 Business Grant Allowance and the COVID-19 Business Grant Special Allowance may be combined for a potential total allowance of £10,935,000 (taking into account all grants previously received under the COVID-19 business grants schemes and subject to the exact amount applicable under the Small Amounts of Financial Assistance Allowance using the Special Drawing Right calculator)
Please contact firstname.lastname@example.org if you require further advice or speak to your financial adviser.
- Businesses eligible to receive a mandatory Restart Grant
- Businesses that have already received grant payments that equal the maximum permitted levels of subsidy/state aid will not be eligible to receive funding.
- Businesses that are in administration, insolvent or where insolvency action has been instigated against it (including any petition or where a striking off notice has been made) are not eligible for funding under this scheme.
- Businesses who are not trading or have closed without being required to do so as part of Government restrictions
- Businesses that have been subject to environmental health or planning enforcement prosecution since 1 April 2020
How to apply
If you would like to apply for a discretionary Additional Restrictions Grant, you will need to read the eligibility criteria in the MDC Covid Business Grants Support Policy (opens in a new window) before completing the application form below.
Closing Date & Grant Payments
The application window closes at 5pm on Wednesday 30 June 2021. Applications will be dealt with on a first come first served basis, subject to available funds. There is no right of appeal against discretionary grant decisions.
Important! Due to additional mandatory pre-payment checks introduced by the government from April 2021, we are required to conduct checks on your business and your bank account before any payments are issued which will have an impact on how quickly we can decide your application.
We aim to decide fully complete applications within 10 working days of receipt and aim to pay funding to successful applicants within 3 working days of the application being approved. It is essential that all of the required evidence and information is provided to avoid additional delays.
If the application is not accompanied by all necessary supporting evidence, the Council will email you to advise that information is missing. The application will not be processed until this evidence is received, i.e. the onus is on you to provide the evidence in a timely manner. If you do not respond within 3 working days of the email from the Council your application will be automatically be withdrawn. No further contact will be made.
The Council and the Government will not accept deliberate manipulation and fraud. Any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to claw back, as may any grants paid in error.
The Council will continue to ensure the safe administration of grants and that appropriate measures are put in place to mitigate against the risks of both fraud and payment error.
The Government Grants Management Function and Counter Fraud Function will support the Council to carry out post-event assurance work to identify high risk payments and to estimate and measure the likely incidence of fraud and error that has occurred in the scheme.
Where checks discover that payments have been made in error or have been claimed as a result of fraud, any initial recovery action will be undertaken by the Local Authority.
Collection and use of personal data in accordance with the requirements of the General Data Protection Regulation and the Data Protection Act 2018
The Council will use the information provided by you for the assessment of your application (including to confirm information about you and your bank account from credit referencing agencies to confirm bank account validity and your identity) and to ensure our records are correct.
Applicants’ personal data will be disclosed to fraud prevention (and/or detection bodies) for the purpose of assisting the prevention and detection of fraud. If you provide false or inaccurate information, we will record this.
Grant recipients personal data will also be shared with the relevant Government Departments, for example HMRC and BEIS. The information may be used by BEIS for research and evaluation purposes and you may be contacted by BEIS for survey purposes.
For more information about Data Protection, please see our Privacy Notice (opens in a new window) webpage.
All businesses are required to confirm that they are eligible for the grant scheme, including that any payments accepted will be in compliance with Subsidy control requirements.
All businesses are required to confirm that they understand that that their personal data will be used and shared by the Council with other bodies to prevent & detect fraud and for grant scheme research evaluation purposes (including BEIS surveys).
Any business falsifying their records to gain additional grant will face prosecution and any funding issued will be recovered.
If having read the guidance above and the MDC Covid Business Grants Support Policy you meet the criteria and would like to apply for an Additional Restrictions Grant, please tick this box to confirm that you have read and understood the conditions