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Sunderland City Council has been allocated £260,512 as part of the Additional Restrictions Grant funding set up to support Sunderland businesses impacted by the Omicron variant of Coronavirus.

The funding will be delivered from Sunderland City Council in two phases. Phase two will be launched following closure of Phase one if there are sufficient funds available.

Phase 1

Grant awards of £2,667 will be paid to all eligible businesses (see below). This figure is equal to the lowest level of grant award available to businesses eligible for the Omicron Hospitality and Leisure Grant Scheme

Eligible businesses will receive one payment per business (rather than per business premises). Payments will be made when all applications have been assessed for eligibility. If the number of eligible applications exceeds the amount of funding available, the level of grant will be reduced on a pro rata basis. 

Is your business eligible?

Eligible businesses include:

  • Hospitality, Accommodation or Leisure businesses without a Rateable Value (R.V.) i.e. those who would otherwise have been eligible for the Omicron Hospitality and Leisure Grant Scheme had they had an R.V., where they are paying rent of at least £250 per month
  • Travel Agents with an R.V.
  • Gyms with an R.V.
  • Sports Businesses with an R.V.
  • Direct Suppliers to Hospitality, Accommodation or Leisure businesses with an R.V.

Eligibility criteria:

  • The business must have been trading on 30 December 2021 from a commercial property in Sunderland and continue to do so;
  • The business must offer in-person services, where the main service and activity takes place in the fixed business rates-paying premises; or
  • The business directly supplies a Hospitality, Accommodation or Leisure business offering in-person services

As part of the online application process, businesses will be required to provide:

  • A current business rates account number; or
  • A current, signed commercial property lease and business bank statement displaying the most recent rent payment; and
  • A business bank statement for the period covering 30 December 2021 to demonstrate that the business was trading on the required date.

Businesses that are not eligible for the ARG Omicron Grant Scheme include:

  • Those that are in administration, insolvent or where a striking-off notice has been made;
  • Those that qualify for the Omicron Hospitality and Leisure Grant; and
  • Those that have already received grant payments that equal the maximum permitted subsidy allowances.

Grant income received by a business is taxable. The ARG Omicron 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.

Applications can be made using the ARG Omicron Grant application form. The deadline for applications is midnight on 13 February 2022. 

Phase 2

Sunderland City Council will launch the second phase if sufficient financial resource remains after the closure of Phase one. The grant levels will be dependent upon this.

Eligible businesses:

  • Any business (in any sector) severely impacted by Omicron, either with a rateable value or with fixed business costs of £250 per month or more.

 

 

About the Author

Martin Johnson Image

Martin Johnson

Partner
With expertise in advising family-owned companies on a range of tax, accountancy and business issues, Martin also has an in-depth knowledge of the automotive and property sectors. In addition, he provides advice on inheritance tax planning and financial management to owner-managed businesses.  Martin leads the firm in developing its expertise in the buy-to-let sector, advising both residential and commercial property owners on relevant tax and legislation issues. A further element to Martin’s role is to build Torgersens’ relationships with banks, financial advisors and specialists in commercial and employment law to ensure that the firm’s clients have access to market-leading guidance.  

To get in touch please e-mail martin.johnson@torgersens.com.

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