Government relief for your small businesses
Managing expenses can be a significant challenge for small businesses, especially when balancing day-to-day operations and long-term goals.
Fortunately, the government provides a variety of funding options and support programs designed to help businesses. Find the best government relief and initiatives below to help your small business grow.
Grants vs. Funds: know your options
When it comes to financing your business, understanding the difference between a grant and funding can help you make smarter decisions.
- Grants are targeted financial awards, often from government bodies or foundations that support specific projects or goals. They’re typically non-repayable, but come with strings attached: applications, eligibility criteria, and reporting requirements.
- Funds, on the other hand, is a broader term. It includes any money available to your business - whether from grants, loans, investments, or even personal savings. Not all funds are free money; some may need to be repaid or come with equity trade-offs.
Why it matters: Knowing the difference helps you identify the right opportunities. Take a look a this guide on how to choose a type that fits your business needs. Enterprise nation also has a diagnostic tool where you can get funding recommendations tailored to your needs.
The Federation of Small Businesses (FSB) has useful content on how to find the right support, see their page here for more information.
You’ll also find sector-specific and regional grant options on the FSB’s guide to UK business grants, from creative industry grants to regional growth fund grants. Why not see what’s possible?
Small Business Rate Relief
Small business rate relief is a discount on the business rates charged on property in England. It’s available to some businesses if the property in question meets certain criteria (rateable value of the property is less or equal to £15,000). Business rate relief rules are different in Scotland, Wales and Northern Ireland.
Applications for Small Business Rate Relief are made through your local council. Visit their website or contact them directly to access the application form.
Flat Rate Scheme
The Flat Rate Scheme is a simplified way for small businesses in the UK to calculate and pay Value Added Tax (VAT). It’s designed to make VAT administration easier for businesses and simplify bookkeeping since you don’t need to keep detailed records of VAT on every transaction. Under this scheme, businesses pay a fixed percentage of their turnover as VAT, rather than calculating VAT on each individual sale and purchase.
To use the Flat Rate Scheme, your business must have a turnover of £150,000 or less (excluding VAT), and you must be VAT registered. Once you’re VAT registered, you can apply for the Flat Rate Scheme Online or you can contact HMRC by phone.
Employment Allowance
Employment Allowance is a UK government scheme designed to help eligible businesses and charities reduce their Employer National Insurance contributions (NICs) by up to a specified amount each year. This allowance is especially beneficial for small businesses, as it directly lowers payroll costs by reducing the amount they need to pay in NICs.
You can apply for employment allowance, by logging into your business online account on HMRC. You’ll need your Government Gateway ID and password to access your account.
Business Growth Accelerator Relief
The Business Growth Accelerator Relief (BGAR) is a UK government initiative that provides tax relief to small businesses investing in growth, such as innovation, research and development, or expansion activities. It helps businesses reduce their tax bills, making it easier to reinvest in operations, hire staff, or fund growth initiatives. This relief aims to make it easier for small businesses to access the resources they need for growth without facing as much of a financial burden.
To qualify, businesses must meet certain criteria and demonstrate a commitment to expansion. You can also visit HMRC online but It's recommended to consult a tax advisor to ensure eligibility and understand how to claim the relief.
The Small Business Bonus Scheme
The Small Business Bonus Scheme (SBBS) in Scotland provides business rate discounts for small businesses. It applies to businesses with a rateable value of £15,000 or less for a single property, or up to £18,000 for multiple properties. Eligible businesses can receive a 100% discount if their rateable value is up to £12,000, or a partial discount up to £15,000. The scheme helps reduce operating costs for small businesses, particularly those facing financial challenges.
Applications are submitted to your local council. You can usually apply online through their website or contact them directly for assistance. For more specific information, visit the Scottish Government or your local council website.
Boiler Upgrade Scheme
What it is: The Boiler Upgrade Scheme provides financial support to UK small businesses replacing outdated heating systems with energy-efficient alternatives like heat pumps or biomass boilers. Grants of up to £7,500 for heat pumps and £5,000 for biomass boilers are available.
How it helps your business: These grants help reduce energy bills and carbon emissions by improving heating efficiency—making your business greener and more cost-effective.
First steps to apply: Start by checking your eligibility. You’ll need to work with an approved installer, who will manage the application and ensure the installation meets required standards. Visit the GOV.UK application page for step-by-step guidance.
When does it end: The Boiler Upgrade Scheme is currently funded through 2025/2026, with a budget of £295 million. Future funding will be confirmed in the next phase of the government's multi-year Spending Review, expected in spring 2025.
Rural Rate Relief
Rural Rate Relief is a government scheme in the UK that provides financial assistance to small businesses located in rural areas. It offers a discount on business rates, typically up to 100%, to help reduce the burden on businesses in less populated regions. This relief is aimed at encouraging local economic growth and supporting essential services.
To apply for Rural Rate Relief in the UK, start by checking if your business meets the eligibility criteria, such as being located in a rural area and operating as a small business that provides essential services. Once confirmed, contact your local council to begin the application process.
Research and Development Tax Credits
Research and Development (R&D) Tax Credits are a government initiative that helps small businesses in the UK by offering financial support for innovation. Eligible companies can claim back a portion of their R&D costs, such as staff wages, materials, and software, which can either reduce their tax bill or result in a cash refund.
To apply for Research and Development Tax Credits, small businesses must ensure their activities qualify as research or development. Gather details of research and development projects, costs, and evidence, then submit the claim to HMRC via their online portal. Many businesses also consult tax advisors for assistance.
Finding the best ways to save money is key to your business's success and knowing how to reduce costs is just as important. Check out our energy-saving tips for even more ways to cut expenses and boost savings.
