Business start up grants & benefits

I am about to start up my own business, but I am worried about the amount of money I will need to get started. I have approached my bank to try to get a business loan, but are there any grants I can claim to help me with the start up costs?

1st November 2010

You will need to approach your local council to find about about grants for new businesses in your area.  Grants typically range from £500 to £1,000 but some businesses will be eligible for more than one grant.  The amount you will be able to claim will be determined by the area in which you will operate your business and the trade sector you are involved in.

In addition to local council grants, the Prince's Trust has new business schemes for individuals aged between 18 and 30 years of age who are either currently unemployed or work less than 16 hours per week.  The Trust runs business training schemes and can provide a start up loan of up to £4,000 (or £5,000 if you are in partnership with somebody else).  The loan is provided at an interest rate of 3%, with only £20 to repay in the first six months and the balance being repayable over two to five years.

If you will be purchasing energy efficient equipment for your new business, you may qualify for an interest free loan from The Carbon Trust.  Loans are given for qualifying euipment between £3,000 and £4,000 and repayments can be spread over a four year period.

If your business makes losses in the first period of trade, you may be entitled to certain state benefits such as tax credits and if you live in rented accommodation, you could be entitled to housing benefit.

To discuss all aspects of starting your own business and which benefits and grants you may be eligible to apply for, please speak to your local TaxAssist Accountant.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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