UK Government’s Brexit Business Support Fund

This piece intends to help readers take a closer look at the recently announced Brexit Business Support fund to the tune of £20 million, by the UK government. The Brexit move has affected businesses in many ways, mostly adversely, and left many SMEs baffled. SMEs benefited the most in the pre-Brexit era, where the UK was automatically a part of any trade deal the EU entered with any other country. 

While the UK was in the EU, companies were free to buy and sell across EU borders without paying taxes, and there was no upper limit on the number of goods to be traded. 

Many small businesses could not escape the effects of Brexit and its transition period, such as trade, services and qualifications, travel, and fishing, while many small business owners and the community at large shared deep reservations on the move, which indicated anxiety.

Considering such reservations pouring in from the business community about changes in the trading environment, the UK government has now introduced monetary inducements to the tune of £20 million, in the SME Brexit Support Fund. Here keeping up with our traditions to keep businesses updated with professional guidance, Clear House Accountants have gathered all necessary information UK businesses need to know about this new initiative. 

Brexit Business Support Fund:

The £20 million Brexit Business Support Fund is geared towards helping SMEs adapt to the changes in trade rules with the EU.

The following are the points that are included in this deal:

• Traders could apply for a grant of up to £2,000 for payment to get practical support for import and export. 
• This fund will help businesses to implement new import control rules coming into effect from April to July.
• Logistics UK has been of immense help in resolving issues concerning the end of the transition and proved to be helpful in supporting hauliers and traders. With the fund being arranged for the SMEs, the UK government has announced that Logistics UK will be engaged from now onwards. 

 The Fund expanded:

The Fund, in addition to the above, has the following on offer:

• Government representatives will hold meetings at regular intervals, preferably on a weekly basis, with specific business sectors across the UK.
• The government will meet the Seafood Exports Working Group and a newly established Scottish Seafood Exports Task Force two times a week to address the concerned industry’s issues. 
• The UK government will support small businesses importing and exporting between Britain and Northern Ireland with Trade Support Service.
• The government is establishing helplines for businesses to acquire the information they need. One such dedicated line is the HMRC imports and exports enquiry service, available on 0300 322 9434 or online web chat. 
• The government will run regular webinars with policy specialists to ensure that SMEs operate smoothly and remove any glitches they might encounter. 
• The UK government has provided a checklist at Brexit Checker Tool on the government’s official website, guiding businesses to do what they must in a personalised list. 
• The government will provide one-on-one support to exporters through an international trade advisor network of 300.
• The UK government has established a dedicated task force to deal with issues concerning the Northern Ireland Protocol.
• The government has also launched a guarantee scheme for SMEs, wherein the government provides an 80% guarantee for financial support programmes for lenders to help with general exporting costs up to £25 million.

How to apply for a Brexit support grant fund?

Who is eligible? 

The steps to follow to apply for the grant are detailed below: 

• For you to apply for the grant, your business must be established inside the UK. 
• Your business should be established inside the UK for 12 months before submitting a grant application. Or must hold Authorised Economic Operator Status, acquired from the concerned government quarters.
• Your business must never have failed to meet your tax obligations or custom requirements. 
• You should not have more than 500 employees working for your business. 
• An upper limit of £100 million is set for your business’s annual turnover, which should not be exceeded, and instead, the annual turnover should remain well below this upper limit. 
• This grant can be used to move goods between the UK and the EU or between the UK and Northern Ireland. 
• The businesses need to complete import or export declarations internally for the goods their business owns. 
• You can use someone else to complete export or import declarations with the added internal capability to import and export effectively. 

Video: UK’s Brexit Business Support Fund

Conclusion:

The anxiety businesses face due to the uncertainty that now comes after Brexit has created high hopes in the UK government by businesses to come up with a plan to assuage their unease. 

The UK government did come up with a plan — Brexit Business Support Fund!

By announcing this fund, the UK government has assuaged the anxiety. This plan’s study reveals that the government devised this plan after it closely observed the unease the SME and business community felt.

The contents of the plan are so viable and vibrant even in theory, which leaves one wondering how this plan’s practical shape looks. The practical implementation of this plan in letter and spirit is bound to bring convenience and comfort to the business community and SMEs.