The Hospitality Transition Support Scheme was established in June 2021 to provide grant assistance to support local businesses in the Hospitality and Catering sectors that have been financially affected due to the global COVID-19 pandemic.
The Scheme provides financial assistance to eligible businesses based on three times a business’ annual rates bill for its commercial premises.
It is intended that this funding will support the sector over the transitional period of the three months of June, July and August 2021.
The aim of the assistance is to help sustain qualifying businesses during the ongoing difficult trading conditions with the intention that the supported businesses will hopefully continue to operate into the future.
Applications for this payment round opened on Friday 18th June and will close on Friday 30th July 2021 at 17:00. Any issues with submitted applications must be resolved by Friday 13th August 2021 at 17:00, failure to resolve issues by this date will result in the application being closed and no payment will be made.
The Scheme offers a single grant payment equal to three times the business’ annual rates bill(s) or the rates contribution included in its commercial premises rent for either 2020/21 or 2021/22.
A copy of the bill(s) and/or the landlord’s written confirmation must be submitted as evidence.
Businesses are able to apply for multiple eligible commercial premises under this Scheme.
Only hospitality, catering and the supply chain businesses directly supporting these businesses are eligible for this Scheme.
An eligible business must have income wholly or mainly from operating a:
a) Commercial business premises which is registered with the Department of Environment, Food and Agriculture as a food business, such as coffee shops, cafes and restaurants; or
b) Commercial business premises in respect of which an on-licence, granted under the Licensing Act 1995, is in force, such as bars, nightclubs and public houses, whether or not they serve food; or
c) Supply chain business which directly supports the businesses listed above.
Important note – For the avoidance of doubt, businesses which provide visitor accommodation and also offer those services listed above in a single business entity are ineligible for this Scheme and should liaise with the Visit Agency regarding the Strategic Capacity Scheme.
In order to qualify for the Scheme and financial assistance all “applicants” must:
a) Have been financially affected (25% or more reduction in turnover) by trading restrictions as a result of COVID-19, including the cancellation of the 2021 TT festival;
b) Confirm that the business is their primary source of income. Please refer to the below definition of primary source of income;
c) To the best of its knowledge, intend to continue trading through the current difficult conditions into at least the short to mid-term future and that if the business closes the grant may be repayable;
d) Be in an eligible sector as outlined in the Guidance;
e) Have been in operation continuously for a period that commenced no later than 2nd March 2021;
f) Have annual profits or gains wholly or mainly from a relevant sector as set out in this Guidance;
g) Not have any overdue payments of more than 3 months which are more than £3,000 relating to Income Tax, National Insurance and VAT.
Important note: However, those applicants who engage with the Treasury to resolve their debts may be eligible for support. Applicants who may be in this situation are encouraged to apply and full tax/ITP/NI checks will be undertaken to determine the current status and eligibility; and
h) Meet other Income Tax, NI and VAT compliance criteria.
Additional criteria specifically for self-employed applicants:
i) Be a self-employed earner as defined by the Social Security Contributions and Benefits Act 19921;
j) Have already notified the Treasury under regulation 87 of the Social Security (Contributions) Regulations 2001 of their liability to pay Class 2 National Insurance Contributions or notified the Assessor of Income Tax of any income from self-employment;
k) Have been in operation, in the capacity specified in the Guidance continuously for a period that commenced no later than 2nd March 2021; and
l) Derive his or her primary source of income, other than income which may be received via a pension entitlement, from an eligible sector.
With regards to self-employed applicants, the primary source of income is defined as one of the following:
1. Only source of income; or
2. Main source of income; or
3. Income above £6,500.
All applications must be submitted via the online application form.
Following receipt of a correctly completed and eligible application form, the Department will seek to process applications within approximately 5-10 working days of submission of the application. However, due to the potentially high demand levels for the Scheme and depending on the complexity of the application, the processing period may be extended.
Potential applicants who are unsure of their eligibility are encouraged to contact the Department for Enterprise by email at email@example.com or by telephone at 687333.
For more information on Coronavirus in the Isle of Man, visit: www.gov.im/coronavirus