On 11th February this year, Michael Gove announced a £20m government fund to help small and medium sized businesses (SMEs) with changes to trade rules with the EU post-Brexit such as new customs, rules of origin and VAT.
However, 9 months later it has been revealed that only £8.4m has actually been allocated to companies trading with the EU, according to Treasury figures. That’s just 42% of the originally promised £20m.
The fund, which could give traders a grant of up to £2,000 for support with importing and exporting under new trade barriers has helped 5,352 businesses so far, however, this is only 7.4% of the 113,000 SMEs that export to the EU and have been seriously affected by the changes.
The Liberal Democrats, who revealed the figures through a written parliamentary question, claimed the Conservative party has “shamefully left many small businesses high and dry” and called on Chancellor Rishi Sunak to use the Autumn Budget to relaunch the fund and make it simpler for businesses to access.
In response to the revelation, a UK Government spokesperson said:
“We’ve always been clear that being outside the single market and the customs union would mean changes and businesses would need to adapt to new processes. Our SME Brexit Support Fund has provided grants of up to £2,000 to more than 5,000 small and medium sized businesses so far.”
What Can the Grant Be Used For?
The SME Brexit Support Fund grant can be put towards training on:
- How to complete customs declarations.
- How to manage customs processes and use customs software and systems.
- Specific import and export related aspects including VAT, excise and rules of origin.
The grant can also be used to get professional advice, from a chartered accountant for example, to help businesses meet its customs, excise, import VAT or safety and security declaration requirements.
Which Businesses Were Eligible for the SME Brexit Support Fund?
In order to apply for the grant, business must:
- Be established in the UK.
- Have been established in the UK for at least 12 months before submitting the application.
- Not have previously failed to meet its tax or customs obligations.
- Have no more than 500 employees.
- Have no more than £100 million turnover.
- Only import or export goods between Great Britain and the EU, or move goods between Great Britain and Northern Ireland. (If the business already imports/exports goods from or to a non-EU country, they are not eligible for this grant.)
Businesses must also either:
- Complete (or intend to complete) import/export declarations internally for its own goods.
- Use someone else to complete import/export declarations but requires additional capability internally to effectively import or export e.g. advice on rules of origin or advice on dealing with a supply chain.
Can Businesses Still Access the SME Brexit Support Fund?
Unfortunately, the government is no longer accepting applications for the scheme after it ended on 30 June 2021.
Still Need Advice On Trading Post Brexit?
At Ryans, we can provide your business with all of the essential information and advice required in order to help you meet all of the new Brexit trading rules and regulations. Get in touch with a member of our team today to discuss how we can help you make the complex clear.