Starting or growing a business is very challenging, so it’s natural for entrepreneurs to tap into all the help they can find. But many businesses seeking help become confused by the vast number of government support initiatives and eventually give up looking for help.
In this article, we point businesses towards the important sources of government help available and describe what they do and how you can access them.
This post was updated in January 2020.
1. GOV.UK website
GOV.UK is a single point of access to all government services and information. It provides information and guidance on starting and running a business, including statutory rights and obligations, and the ability to search for support using the business finance and support finder.
The business finance and support finder is an interactive tool which is searchable by sector, business size, location, activity and business stage. It allows businesses to search for government-backed support and finance, including:
- Grants, finance and loans
- Business support e.g. mentoring, consultancy
- Funding for small and medium-sized businesses and startups
The website also has information on:
- Employing people
- Money and tax
- Business and self-employment
2. National Business Support Helpline
The Business Support Helpline is a key element of the government’s business support provision. It provides signposting, diagnostic support and business improvement guidance to pre-starts, startups and existing businesses. The service provides national information, which all businesses need, plus information, guidance and signposting to local support.
There’s a call-back service offering more in-depth support for businesses that have immediate or complex needs or may be at risk. This is run through a small team of experienced Business Support Advisors. They offer up to 60 minutes of free telephone business support, tailored to the individual business needs.
Businesses can call 0300 456 3565 to speak to a business support advisor (9.00am – 6.00pm Monday to Friday). Businesses can also ask questions through their LiveChat option or tweet @businessgov using #BusinessSupportHelpline.
3. Local help for business
The government has created a network of local growth hubs, which join up and deliver local business support. You can find your local growth hub by using the growth hub finder.
There are 38 growth hubs across the country, one for every Local Enterprise Partnership. These are a single local access point for all public and private sector business support, effectively a ‘front end’ for LEP programmes and other economic support. They provide free support on a range of queries, from funding to Brexit.
Growth hub partners include Chambers of Commerce, the Federation of Small Businesses, business schools, Enterprise Zones and banks.
4. Financial support
Start Up Loans Company
The Start Up Loans Company is a subsidiary of the British Business Bank and funds loans of up to £25,000.
If you have a great business idea or you’ve been trading for less than 24 months, you could be eligible. You must be aged 18-plus, based in the UK and be a UK resident.
It also provides advice and mentoring. The scheme has so far supported over 50,000 business ideas with more than £350 million worth of loans.
There are regional grants that support growth through capital investment and job creation – location can play a key part:
- The location of your business can increase your chances of securing a grant. You may be eligible for support if you’re starting a business in an economically disadvantaged area, especially if it’s one with high unemployment.
- Local support (e.g. subsidised rent and rates) is often available to encourage small businesses to start up in particular areas.
New Enterprise Allowance
If you’re over 18 and either you or your partner receive benefits (e.g. Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance), you may qualify for New Enterprise Allowance. This can help you to start your own business or develop a business if you’re already self-employed.
As part of this scheme, you’ll get a mentor who will give you advice and support to help you get set up and start trading. Once you’ve made a business plan with your mentor, you could be eligible for weekly grants of up to £1,274 over 26 weeks and can apply for a loan to help with startup costs.
You can access information and advice on this from your Jobcentre Plus work coach.
Employer-led apprenticeship reforms continue to improve the quality of apprenticeships.
- The National Apprenticeship Service gives advice to employers on how to employ an apprentice.
- The government introduced changes to apprenticeships funding in April 2017, with a new Apprenticeships Levy now payable by organisations with a salary bill of over £3 million per year.
- Those with a salary bill of less than £3 million don’t pay the levy and instead share the cost of training and assessing their apprentices with the government – this is called ‘co-investment’. These small businesses pay 10% towards the cost of apprenticeship training and the government then pays the remaining 90%, up to the funding band maximum.
- There are two different types of apprenticeships to choose from: apprenticeship standards (each one of these covers a specific occupation and sets out the core skills, knowledge and behaviours an apprentice will need); and apprenticeship frameworks (which are a series of work-related vocational and professional qualifications, with workplace and classroom-based training).
- Use the Find apprenticeship training service to select an approved apprenticeship training provider.
6. Tax reliefs
The government offers support to small businesses through a number of schemes to reduce tax liabilities, including:
If you need to buy assets that can be classed as plant and machinery (excluding cars), you can claim tax relief on the full value of these items in the first year of purchase. The criteria are stringent, so it’s worth checking if you qualify and also remember you may need to pay tax if you sell the item after claiming it.
The AIA amount has temporarily increased to £1 million until 31 December 2020.
If you buy an asset that qualifies for first year allowances, you can deduct the full cost from your profits before tax and it doesn’t count towards your annual investment allowance. If you use energy-saving equipment – such as cars that have low CO2 emissions – you can claim “enhanced capital allowances”.
If your business contributes to the creative industry, you may be eligible for one of eight corporation tax reliefs that allow companies to claim a larger deduction or, in some circumstances, claim a payable tax credit when calculating your taxable profits. Find out if your business qualifies.
You could reduce your National Insurance bill by up to £3,000 by claiming this. You can claim it each month when you do your payroll, which means that no National Insurance Contributions are payable until your £3,000 allowance has been used up or the tax year ends (whichever comes sooner). You can’t claim if you only have one employee.
If you’re selling all or part of your business, this scheme allows you to pay only 10% Capital Gains Tax on any qualifying assets.
If your company is liable to pay corporation tax and makes a profit from patented inventions, you may be able to apply a lower rate of corporation tax on profits earned. Only certain patents are eligible, so it’s worth checking if you qualify.
The Research and Development (R&D) tax relief is a company tax relief that can either reduce a company’s tax bill or provide a cash sum. It’s based on how much a company spends on R&D and specifically looks at projects that are trying to advance science or technology.
If you’ve been trading for less than two years and have less than £200,000 of assets, you can use this scheme to incentivise potential investors to fund your growth. It’s designed to help companies raise money by offering tax reliefs to individual investors who buy new shares in your company.
You can receive a maximum of £150,000 investment through SEIS, on which your investors can claim relief, but conditions do apply so check the guidance carefully to ensure your investors will be eligible.
Your chartered accountant will be able to advise on the schemes that may be available to your business.
7. National business support programmes
Arts Council England
The Arts Council Grant Scheme is aimed at organisations undertaking creative projects as part of their primary activity. It’s open to individuals as well as organisations, libraries and galleries.
The funding finder is regularly updated with new funds and programmes.
Department for International Trade
The Department for International Trade’s export hub provides advice and training on selling overseas, from finding target markets to contacting suppliers. Visit the export hub.
Design Council Spark
The Design Council is an independent charity that works in the public interest. The Design Council Spark is a support and funding programme that helps startups develop their product ideas. This year’s programme is now closed but you can register your interest for next year here.
Innovate UK is part of UK Research and Innovation, a non-departmental public body funded by a grant-in-aid from the UK government. It provides funding to support R&D and innovation activity to organisations across the UK, mainly through web-based competitions.
It supports research, development and demonstration projects through four broad sector-based programmes:
- Emerging and Enabling Technologies
- Health and Life Sciences
- Infrastructure Systems
- Manufacturing and Materials
Businesses can apply for funding to test the feasibility of an idea, research and develop it and demonstrate it in a prototype. All of the current and forthcoming funding competitions run by Innovate UK are published here.
Innovate UK also offers a Knowledge Transfer Network to provide business owners with markets and finance to improve their companies.
Intellectual Property Office (IPO)
The Intellectual Property Office provides information on things like trade marks, patenting and copyright. It also trains independent business advisers as IP auditors so they can advise SMEs on IP issues.
The IPO has produced a helpful booklet on IP support – Business Support for SMEs: Maximising the Value of Intellectual Property.
An online resource for small and medium-sized businesses that offers access to around 15,000 trained volunteer business mentors. Find out more and sign up online.
We endeavour to keep this guide up to date. Please email Chris@ThePitch.uk if you spot something that needs updating.