Eureka Eurostars 3: call for innovative SMEs

UK-registered SMEs can apply for a share of up to £2.5 million for collaborative research and development projects with partners from Eurostars member countries.

The Eurostars 3 programme is Eureka network's funding programme. It aims to support collaborative research and development (CR&D) projects led by innovative SMEs in participating countries.

Call 2 of Eurostars 3 programme has now opened and is accepting applications from UK micro, small or medium-sized enterprises (SMEs).

To be eligible, CR&D projects must focus on industrial research. They must have high market potential and develop at least one of the following:

• innovative products
• technology-based applications
• technology-based services

To apply, you must also fulfil seven eligibility criteria.

In the UK, only UK-registered innovative SMEs are eligible for funding provided that they meet competition conditions. More than one UK SME can be involved in each project.

UK SMEs can apply for a total grant of up to 360,000 euros for each eligible UK project partner or 60 per cent of total eligible project costs, whichever is the least.

Projects must be collaborative and can last up to 36 months. Your project start date depends on the national funding procedures of the Eureka Eurostars members involved in the selected projects.

See: Competition overview - Eureka Eurostars 3: call 2 - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)

Poor Take-up of Tax Free Childcare Accounts

The government are concerned about the lack of take up of tax-free childcare accounts, with HMRC estimating that less than 22% of families eligible for the scheme had joined in March 2021. With many parents returning to work following the pandemic they should be encouraged to set up a tax free childcare account to help with their childcare costs. HMRC are suggesting that employers should make their employees aware of the support available to families with young children. With many parents working from home for part of the week tax free childcare accounts are more flexible than childcare vouchers.

Childcare vouchers continue to be available for employees who joined a qualifying scheme before 4 October 2018 and applies to children up to age 16.

Tax-free childcare is available for working families (including the self-employed) who are not receiving tax credits, universal credit or childcare vouchers. It can also be used at the same time as the 15 or 30 hours of free childcare in England. Key points:

• For working families, including the self-employed, in the UK
• Earning at least £142 per week (equal to 16 hours at the National Minimum or Living Wage) each
• Who aren't receiving Tax Credits, Universal Credit or childcare vouchers
• With children aged 0-11 (or 0-16 if disabled)
• For every £8 you pay into an online account, the government will add an extra £2, up to £2,000 per child per year

Note that the tax-free childcare scheme is not available if either partner expects to individually earn more than £100,000 a year.

For every £8 paid into an online account, the government adds an extra £2, up to £2,000 per child per year (£4,000 for disabled children). For example, for childcare costs of £500 per child per month, the family would pay £400 into their childcare account and the government would pay in £100 per child. This would be an annual saving of £1,200 per child.

The account can be used to pay for nursery fees, breakfast clubs, after school clubs, summer camps and OFSTED registered childminders.

For an overview of government childcare support see:

https://www.childcarechoices.gov.uk/

The importance of a shareholders agreement

For limited companies, when it comes to making decisions, Company Law states shareholders who own more than 50% can pass a motion at a company meeting regardless of the views of other shareholders and if shareholder(s) owns more than 75% of the shares they control the company outright and can veto the decisions of all other shareholders. 

This may not suit all business situations, especially where you have two or more founders holding equal share capital or a group of owners with varying amounts of capital, some of whom are directors and some who are not, but who are all working together for the company’s success.

A shareholders’ agreement is entered into between all or some of the shareholders in a company. It regulates the relationship between the shareholders, the management of the company, ownership of the shares and the protection of the shareholders. They also govern the way in which the company is run.

A shareholders agreement can help define how a business makes decisions to the benefit of all owners and is recommended where:

• A small number of owners want to reach collective and fair decisions for the benefit of all
• Some owners may want to be able to influence decisions that are particularly relevant to them
• Some shareholders may not be directors and cannot influence operations on a day to day basis

Typically it is seeking to deal with the three “D’s” of death, disability and disagreement. It may also cover a variety of other significant areas, for example, retirement and buy back of shares. 

Key areas for any shareholder agreement

This is not a comprehensive list as each situation is different, but it may help you collect the thoughts of all shareholders before you draw up an agreement.

1. Company details including structure, directors and officers
2. Purpose and aims of the company
3. Equity split of shareholders
4. Parties to the agreement
5. Shareholders rights, obligations and commitments
6. Decision making processes on major issues, required voting majorities and day to day operating decisions
7. Restrictions on the sale of shares
8. Rights of first refusal and pre-emptive rights to acquire shares on leaving, retirement, death or disability
9. Death, disability and other retirement compensation payments
10. Management contracts, director approval and remuneration amounts
11. Insurance and other protective requirements
12. Professional advisers and change of professional advisers
13. Dispute resolution
14. Changes to and termination of the agreement
15. Buy out provisions for leaving shareholders
16. Valuation of shares on changes and valuations of the business

Our view is that a shareholders agreement is an essential document for any limited company and an equitably drafted agreement should provide comfort to all parties to the agreement.

Please talk to us if you need help in planning for an agreement, especially where there are several shareholders, a new company is being formed, a shareholder wants to sell their shares or pass them to their children, someone is nearing retirement, or the company has borrowed money from a shareholder. We can help with share and company valuations and putting the shareholders wishes into an agreement with a local solicitor.

Employers’ PPE responsibilities extended to ‘workers’ from April 2022

From April 2022, employers will be obliged to provide personal protective equipment (PPE) to workers, as well as employees, who may be exposed to health and safety risks at work.

An amendment to the Personal Protective Equipment at Work Regulations 1992, will come into force on 6 April 2022.

Organisations will need to undertake a risk assessment to establish whether a worker requires PPE to carry out their work tasks. If they do, the employer will need to carry out a PPE suitability assessment and provide protective equipment or clothing to them free of charge, as they do for employees.

Organisations will also be responsible for the maintenance, storage and replacement of any PPE they provide, while workers will be responsible for reporting any loss or damage to their PPE.

See: Personal protective equipment (PPE) at work (https://www.hse.gov.uk/ppe/index.htm)

11th February 2022 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• Additional Restrictions Grant – Apply Now
• Geovation Accelerator Programme is now open for applications
• Directors may be liable for overclaimed CJRS grants
• What’s your growth strategy?
• Selling your Business via a Management Buy-Out

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a great weekend.

Stay safe and well.

Cheers,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100

Additional Restrictions Grant

The Additional Restrictions Grant (ARG) is aimed at businesses that have been significantly financially impacted due to the Government’s response in December 2021 to the new COVID-19 Omicron variant, introducing international travel restrictions and implementing the Government’s Plan B restrictions.

This additional fund is aimed at businesses with ongoing fixed costs that are significantly financially affected by the latest COVID-19 restrictions.

Eligibility

The following eligibility criteria applies and businesses must:

• have been trading on 30 December 2021
• not be eligible for an Omicron Hospitality and Leisure Grant
• have 49 employees or less
• have ongoing fixed monthly business costs in North Somerset (e.g. rent, insurances, utilities, equipment rental)
• not have exceeded state subsidy levels
• have been significantly affected by the Government’s response to the new Omicron variant
• be registered with HRMC if a home-based business and provide their Company Unique Taxpayer Reference and a copy of their most recent tax return.
• must not be in administration, insolvent or subject to a striking-off notice

Potential eligible businesses include:

• Cafes not paying business rates
• Breweries
• Freelance and mobile businesses (inc. caterers, events)
• Coach tour operators
• Tour operators
• Personal care (hair dressing & beauty)
• Travel agents
• Wedding industries
• Taxi driver
• Driving instructors
• Guest houses not paying business rates
• Holiday apartments, Cottages or bungalows not paying business rates
• B&Bs not paying business rates
• Catered holiday homes not paying business rates
• Holiday homes not paying business rates

Eligibility for grants is restricted to specific businesses that have seen a significant impact in their turnover due to the recent Omicron COVID-19 outbreak.

How to claim and when?

If you previously received an Additional Restrictions Grant (ARG) for businesses in the hospitality, accommodation or leisure sectors you may be eligible for this new grant and North Somerset Council will email you directly with a link to the online application form.

If you do not receive an email inviting you to claim the Omicron Hospitality and Leisure Grant but you believe that you are eligible you can apply via the North Somerset Council website below: 

https://www.n-somerset.gov.uk/my-services/community-safety-crime/emergency-management/covid-19-north-somerset-together/information-organisations-businesses-groups/restrictions-support-grants-businesses/additional-restrictions-grant 

Geovation Accelerator Programme is now open for applications

The Geovation Accelerator Programme is backed by Ordnance Survey and HM Land Registry. The Programme offers 6 months intensive support, structured to each start-ups needs, aimed at helping founders grow their business. Start-ups receive up to £20,000 grant funding and the equivalent to over £100,000 in benefits on the Programme.

Applications for the Spring 2022 intake are now open and are seeking start-ups working in PropTech, as well as start-ups using location data in the energy and mobility industries, especially with a sustainability angle.

The deadline to apply is 28 February 2022.

See: https://geovation.uk/accelerator/