New £2,000 support grant for SMEs

On Thursday 11 February, the Chancellor of the Duchy of Lancaster Michael Gove announced a £20 million SME Brexit Support Fund. This will support small and medium sized businesses adjust to new customs, rules of origin, and VAT rules when trading with the EU.

Who can access the grant?

SMEs who trade only with the EU and are therefore new to importing and exporting processes will be encouraged to apply for grants of up to £2,000 for each trader to pay for practical support including training and professional advice to ensure they can continue trading effectively with the EU. The full list of qualifying criteria for the grant can be found on the gov.uk site and the link at the bottom of this article.  

When is the grant available?

The announcement follows extensive engagement with individual businesses, leading business organisations and trade associations from across all parts of the UK.  The fund will be administered through the pre-existing Customs Grant Scheme and will open for applications next month. The fund has been set up to support businesses prepare for the new import controls coming into force from April and July, as set out in the Border Operating Model. With new control of our borders following Brexit, the pragmatic decision was made to introduce new import controls in three stages up to 1 July 2021 to allow traders and hauliers time to adjust to new processes. This means businesses do not have to complete new import declarations for up to six months, unless they are moving controlled goods. You can find out how to apply for your grant and further information from the gov.uk site here.

If you have any questions please feel free to book some time with our Regional Head of VAT, Sarah Hughes who will be able to guide you through the current challenges.