Treasury offers helping hand to small businesses in co-working spaces

 

After a lot of complaints from those (usually high growth) companies based in serviced offices and co-working spaces, the government is now offering £617m worth of funding to help co-working space tenants and market traders ineligible for coronavirus business rates grant scheme.

This additional funding will be added to the £12.3bn handed to local authorities for them to distribute to all small businesses, with additional help for those in retail, leisure and hospitality.

Small businesses working out of co-working spaces were left short because they were not directly paying business rates, they were ineligible for either the small business grants fund or the retail, hospitality and leisure grants, therefore more than 10,000 small businesses based in shared offices originally missed out on the grant.

There will be three levels of grant payments from between £10,000 up to £25,000.

However, local authorities can decide to pay amounts of less than £10,000 based on certain circumstances.

Businesses eligible include:

  • Businesses in shared spaces
  • Regular market traders
  • Small charity properties
  • Bed and breakfasts that pay council tax rather than business rates

For more information see the government website for more details – https://www.gov.uk/government/news/top-up-to-local-business-grant-funds-scheme

To speak to someone at Garbutt + Elliott for further guidance, please contact Partner, Simon Palmer at spalmer@garbutt-elliott.co.uk