Updated – Scottish Government COVID-19 Restrictions Fund

The Scottish Government has published details of the new £40m Restrictions Fund to provide grants and employment support to assist businesses affected by the temporary restrictions put in place to slow down the spread of Coronavirus.

The new Restrictions Fund will provide: –

• One off grants of up to £3,000, depending on rateable value, to bars, restaurants and other businesses required to close by the regulations.

These grants will be distributed by local authorities. Up to £2,000 will be payable to businesses with a rateable value of up to £51,000 and for those with a rateable value of £51,001 or above the grant will be £3,000.

To be eligible to apply to the Business Closure Fund the business must: –

• Be a hospitality or other relevant business required by law to close under the current “brake restrictions”
• Have a business bank account. This is the account the grant will be paid into if the application is successful
• Have premises registered for Non-Domestic rates.

Note businesses that pay rates via their landlords, rather than directly to a Council, are eligible to apply but will need to provide evidence of this by submitting a copy of the lease agreement.

• Not have breached wider COVID regulations/requirements prior to local restrictions

Applications can be made by Limited Companies, Sole Traders, Trusts and Partnerships provided they meet the eligibility conditions.  Applicants must not have certain connections to tax havens, as set out in the Coronavirus (Scotland) (No.2) Act 2020.

The Restrictions Fund will also provide: –

• Grants of up to £1,500 to some businesses that remain open but are directly impacted by the restrictions, including those in the direct supply chains of organisations that had to close with effect from 9 October 2020.

Payment mechanisms for this additional support are currently being identified by the Scottish Government. We will provide further information regarding this as soon as it becomes available.

• A discretionary amount of £11m will be available to assist businesses that need support but do not fall into the above categories. For example, play centres that have been unable to re-open this month.

Detailed eligibility criteria for the Discretionary Business Hardship Fund are still being worked on and will be published as soon as they are finalised.  The Scottish Government have stated that this fund will be open to the hospitality and other businesses, detailed in the nationwide restrictions, which are not required to close and their immediate supply chains.

• Up to £9m of funding to help with the costs of re-furloughing staff by supporting the 20% salary contribution currently required by the UK Government.

This is to be “targeted” support and the Scottish Government is going to work with the STUC, employer organisations and HMRC to deliver this to employees.

How to apply

The Scottish Government is working with the local authorities to finalise the administrative arrangements required to ensure the efficient processing and payment of claims and to agree the appeals process.

Applications will go live as soon as possible.  They have also stated that there is no point in contacting local authorities at the moment.

We will of course confirm when applications for all the above grants go live.

This blog was updated on 16 October 2020.  Please click on the following link to see the updated blog:-

https://jsca.co.uk/scottish-government-covid-19-restrictions-fund-applications-open-on-20-october-at-9am/

https://www.gov.scot/news/protecting-jobs-and-businesses/

https://www.gov.scot/publications/coronavirus-covid-19-restrictions-fund/

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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