Government grants, support and funding for small businesses

As UKBF members know well, starting and growing a business can be extremely challenging. But support, advice and funding are available – if you know where to look for them.

In this guide, we’ve rounded up all the places where you can access support from government and government-affiliated sources. From start-up loans to seed funding, tax reliefs to training opportunities and mentoring to networking, you’ll find opportunities aplenty here.

Government-backed support, advice and funding​

Whether you’re looking for practical advice or funding opportunities, the government has a host of resources to help you.

Government website​

The best place to start is GOV.UK. This website is a one-stop shop that offers extensive information on starting, running and growing a business. This includes statutory rights and obligations, tax advice, access to training and upskilling and more.

You can use the business finance and support finder to find highly relevant government-backed support and finance, too.

National Business Support Helpline​

The Business Support Helpline provides free support and advice to businesses. England, Scotland, Wales and Northern Ireland all have their own respective websites and helplines. You can access support via telephone, email, social media and live chat.

Businesses in England can call 0800 998 1098 (Monday to Friday, 9 am-6 pm) or email [email protected].

Start Up Loans Company​

A Start Up Loan is a government-backed personal loan available to anyone looking to start or grow a business in the UK. Applicants can borrow £500-£25,000 over one to five years at a fixed interest rate of 6% per year.

It’s a personal loan, so you will be liable for payment event if the business fails.

In addition to finance, successful applicants receive 12 months of free mentoring and exclusive business offers to help them succeed.

Local Growth Hub​

Your local Growth Hub can help you access business support and advice. There are 38 growth hubs across England, one for every Local Enterprise Partnership (LEP). These public-private sector partnerships join up national and local business support so it‘s easy for businesses to find the help they need.

Enterprise Zones​

Enterprise Zones are areas across England where businesses can access tax breaks and government support.

Businesses that locate in an Enterprise Zone can access up to a 100% business rate discount (worth up to £275,000 per business over a five-year period) or 100% enhanced capital allowances tax relief for businesses making large investments in plant and machinery.

Within Enterprise Zones, businesses can benefit from simplified local authority planning on certain developments, plus more benefits.

Apprenticeships​

More than three quarters of employers said that hiring an apprentice helped them improve productivity and the quality of their offering. Furthermore, if you’re an employer with an annual pay bill of £3 million or less, you only pay 5% towards the cost of training and assessing your apprentice, with the government paying the rest.

Gigabit Broadband Voucher Scheme​

The Gigabit Broadband Voucher Scheme provides up to £3,500 for help to cover the costs of installing gigabit broadband for businesses in certain rural areas. To be eligible, businesses must not have more than 249 employees. Companies must have an annual turnover of less than £36 million or an annual balance sheet total not exceeding £18 million.

UK Tradeshow Programme​

The UK Tradeshow Programme offers government support to help UK businesses attend or exhibit at overseas trade shows. Eligible businesses can benefit from grant funding to cover costs, as well as training.

Government backed organisations that help small businesses​

Arts Council England​

The Arts Council Grant Scheme has billions of pounds of funding to invest in creative business and organisations. Check out funding opportunities.

Innovate UK​

Innovate UK supports innovative ideas and business growth through grant funding, loans or procurements. Check out its funding opportunities.

Intellectual Property Office​

The Intellectual Property Office offers advice and information on things like trademarks, patenting and copyright. The IPO has a range of online training tools.

Mentorsme​

Mentorsme.co.uk is an online gateway for entrepreneurs looking for mentoring services. The free site connects businesses with quality-assured mentoring organisations across Britain.

Tax reliefs available to small business owners​

The government has plenty of tax reliefs available to support businesses, including:

Capital Allowances​

You can claim Capital Allowances when you buy assets that you keep to use in your business. This includes equipment, machinery and business vehicles (known as “plant and machinery”). You can deduct some or all of the value of the item from your profits before paying tax.

Annual investment allowance​

Annual Investment Allowance is a form of Capital Allowance. You can deduct the full value of an item that qualifies for AIA from your profits before tax. One major exception is business cars. The criteria is strict, so be sure to research thoroughly.

Business rates relief​

Some business properties may be eligible for discounts on business rates. There are eight possible reliefs, which you apply for through your local council.

Employment Allowance​

Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to £5,000. If your employers’ Class 1 National Insurance liabilities were less than £100,000 in the previous tax year, you may be eligible.

Creative Industry tax reliefs​

If you are a creative business, you may be eligible for one of eight corporation tax reliefs. These allow eligible companies to claim a larger deduction or, in some circumstances, claim a payable tax credit when calculating your taxable profits.

Business Asset Disposal Relief​

You may be able to pay less Capital Gains Tax when you sell all or part of your business. Business Asset Disposal Relief enables you to claim 10% on all gains on qualifying assets.

R&D tax credits​

Research and Development (R&D) is a tax relief that can reduce a company’s tax bill or provide a cash sum based on how much a company spends on R&D. The scheme specifically looks at businesses that are advancing science or technology.

Patent Box​

The Patent Box allows companies to apply a lower rate of Corporation Tax to profits earned from its patented inventions.

Seed Enterprise Investment Scheme​

The Seed Enterprise Investment Scheme (SEIS) is designed to help your company raise money when it’s starting to trade. It does this by offering tax reliefs to individual investors who buy new shares in your company.

You can receive a maximum of £150,000 through SEIS investments. If your company does not have gross assets over £200,000 and has less than 25 full-time equivalent employees when the shares are issued, you might be eligible. Read the application criteria carefully before applying.

The Enterprise Investment Scheme​

The Enterprise Investment Scheme (EIS) is designed to help you raise money to grow your business. As with SEIS, it does this by offering tax reliefs to individual investors who buy new shares in your company. Under EIS, you can raise up to £5 million each year, and a maximum of £12 million in your company’s lifetime.

Your company must not have gross assets worth more than £15 million before any shares are issued and not more than £16 million immediately afterwards. You must also have less than 250 full-time equivalent employees at the time the shares are issued. Read the application criteria carefully before applying.