Grants & Funding questions
18 direct answers, each with the short version first and a link to the full guide. For the whole topic, see Grants & Funding.
Do you have to pay tax on business grants?
Yes, in most cases. Business grants are generally treated as taxable income for Corporation Tax or Self Assessment purposes and must be included in your accounts for the period you become entitled to them. Capital grants used to buy assets may be treated differently, so check with your accountant.
What is the difference between a grant and a loan?
A grant is non-repayable money awarded for a specific purpose, usually with conditions on how it is spent. A loan must be repaid, typically with interest. Grants are harder to get because they are competitive and oversubscribed; loans are more widely accessible but create debt you must service.
Who qualifies for the Boiler Upgrade Scheme?
Owner-occupiers and landlords in England and Wales replacing a fossil fuel heating system qualify. The scheme pays £7,500 towards an air source or ground source heat pump, or £5,000 for a biomass boiler in rural areas. You need an MCS-certified installer and a valid EPC with no outstanding insulation recommendations.
How do you apply for Access to Work and how long does it take?
Apply online at gov.uk/access-to-work or phone the helpline, giving your employer or self-employment details and describing how your disability affects your work. A case manager then discusses what support you need. Decisions typically take several weeks, and support is not always backdated — so apply before starting a new job if you can.
What is the difference between SEIS and EIS?
SEIS gives investors 50% income tax relief on up to £200,000 per tax year, but only for very early-stage companies. EIS gives 30% relief on up to £1 million (£2 million for knowledge-intensive companies) in a broader range of early businesses. Both exempt gains from CGT after three years.
Do you have to pay back crowdfunding money?
It depends on the type of crowdfunding. Reward and donation crowdfunding are not repaid — you deliver the project or promised rewards. Equity crowdfunding gives investors shares rather than repayment. Only debt crowdfunding (peer-to-peer lending) must be repaid with interest under the loan agreement.
How do I spot a grant scam?
Two signs settle it. A genuine UK grant is never “guaranteed” before assessment, and never requires an upfront fee to release the money. Add unsolicited contact, a demand to act immediately, and a funder you cannot find on GOV.UK, and you are looking at fraud.
Can my small business claim R&D tax credits?
Only if it is a company — sole traders and partnerships cannot claim. The work must seek an advance in science or technology by resolving a technological uncertainty, which covers far more than laboratories: manufacturing, construction, software and food production all qualify regularly.
How much can I borrow from the Start Up Loans scheme?
Between £500 and £25,000 per person at a fixed 6% a year, over one to five years, with no arrangement fee and no early repayment charge. Each co-founder can apply separately, so two people could raise up to £50,000. The average loan approved is around £7,500.
What documents do grant funders ask for?
Nearly always the same core set: a project description and statement of need, a detailed budget, your last one to three years of accounts, your governing document, a trustee or director list, and a monitoring plan. Assemble them once and applications become far quicker.
What is match funding and where can it come from?
It is the share of a project’s cost you must provide yourself. A 50:50 requirement on a £100,000 project means the grant pays £50,000 and you find the rest. Match usually has to come from private sources — one public grant rarely counts as match for another.
How do I apply for National Lottery funding for a community project?
Start with Awards for All, which gives £300 to £20,000 for small community projects on a short application decided in about 12 weeks. Larger work goes through Reaching Communities in England, from £10,000 over one to five years, beginning with an expression of interest.
Who pays for an apprenticeship?
Government pays most of it. Employers with a wage bill under £3 million co-invest just 5% of training costs, and pay nothing at all for a 16–18-year-old apprentice if they have fewer than 50 employees. Large employers fund training from their Apprenticeship Levy account.
Am I eligible for a business grant?
Four things decide it: your legal form, your size against the SME definition, how much public subsidy you have already had, and your trading history. Most programmes also restrict by location and sector, so check those before writing a single word of an application.
How do I get funding to repair a historic building?
The National Lottery Heritage Fund is the main source. Grants for Heritage runs in two tiers — £3,000 to £10,000 for first-time and community-led projects, and £10,000 to £250,000 for more developed ones. Above £250,000 a two-stage development application is compulsory.
Where can I get free business advice and help finding grants?
Your local Growth Hub. There are 38 across England offering free advice and signposting to grants, finance and specialist programmes, with no charge to businesses. Wales has Business Wales, Scotland has Scottish Enterprise, and Northern Ireland has Invest NI alongside local councils.
What happens if a grant-funded project goes wrong?
Tell the funder immediately and use the formal change request process. Most funders will agree a revised budget, timeline or set of outcomes if you ask early. Clawback — repaying the grant — usually follows undeclared changes, ineligible spending or silence, not honest difficulty.
How much equity should I give an angel investor?
A typical angel round gives away 10–25%. Beyond about 30% at seed stage the business becomes hard to fund later, because institutional investors need room in the cap table. Be wary of any angel seeking a very large stake at a very low valuation.