Visitor Attractions & Events Scheme
As a direct consequence of the Covid-19 restrictions many events and attractions businesses have been prevented from trading and/or have seen a dramatic fall in visitor numbers. The aim, therefore, of the Events & Attractions Subsidy Scheme is to support the underlying costs of qualifying businesses to enable them to continue to trade in 2021.
The scheme will provide support for October 2020 up to and including April 2021.
The application can be made to Government from Tuesday 5th January 2021.
Business eligibility for the scheme
Details of the specific business categories eligible for this support are in the section below.
Scheme qualifying criteria
See the section below for all the qualifying criteria that an application must satisfy including that it:
- Has suffered a detriment to turnover of over 50% due to public health restrictions
- Has sought to borrow to support it through its financial difficulties, either through commercial options or the Business Disruption Loan Guarantee Scheme
- Is registered for GST and has a minimum turnover of £300,000
- Has undertaken a Jersey Business Health Check
Support provided by the scheme
The subsidy payable is the amount needed to break even in the month of the claim or 80% of designated fixed costs whichever is lower.
Fixed costs are those incurred by the business on an accruals basis in the month of the claim. The subsidy will be paid on a monthly basis in arrears. A list of eligible costs is in the section below.
Government guidance on the scheme is available here:
Step 1: Read and understand the declarations
Conditions apply to this scheme that you MUST read and understand before making an application.
If the business is incorporated you will need to hold a board meeting and provide a signed board resolution declaring your acceptance of the conditions. The guidance notes explain the scheme and the conditions in detail. You will find templates for the board resolutions in this section of the Government website.
Step 2: Ensure you are eligible
Read the sections below to make sure you are eligible for the scheme and meet all the conditions before you apply:
- Business categories eligible for the scheme
- Full qualifying criteria
Step 3: Contact Jersey Business
The scheme rules are that you must undertake a Jersey Business Health Check before putting a form application in to Government. Jersey Business will provide free, independent and confidential advice to help you navigate this process and will work with you to support your application.
To assist in this process you will need a copy of your last 12 months accounts as well as any financial projections you have developed for the upcoming months.
Step 4: Submit an application to Government
Once the health check is complete you will submit an application form to the Government’s Department for the Economy. Applications can be submitted from Tuesday 5th January 2021.
Once your application is received it will be assessed to confirm eligibility and the amount of support you will receive. If your application is unsuccessful you will receive an email from the department explaining the reasons for the decision.
Applications can be sent to [email protected].
Step 5: Confirmation of the support and payment
If your application is successful, you will receive email notification of the support being provided and the date you will receive the funds.
Complete the application for the Business Health Check indicating on the form that you wish to apply for support through this scheme.
The scheme will support businesses that are:
- Event specific venues that are completely reliant on the events and entertainment industry.
- Event promotors and organisers who promote events and concerts as their only business.
- Main suppliers (including large event caterers), employing staff, with warehousing and stocks of equipment whose principle customers are events requiring gatherings of more than 40 people, who or are unable to operate due to Level 1 restrictions, this being their principal income stream.
- Businesses not attached to a hotel or restaurant holding a seventh category (b) ”designated nightclub” and/or (c) “any other place of entertainment” license, previously reliant on revenue coming from non-seated service during late night hours.
- Travel businesses providing tour operations delivering visitors to Jersey, with trading history, employing staff. Support is only available for the business line delivering inbound visitors.
- Attractions with fixed assets and employed staff that rely on the visitor economy and attract significant footfall.
- Government funded arm’s length organisations such as Jersey Heritage.
- Beneficiaries of the Visitor Accommodation Support Scheme.
- Businesses where the States of Jersey is a shareholder.
In order to qualify for support through this scheme:
- The business must have had a Jersey Business “Health Check”, to include an assessment that with the proposed support, they can continue to trade for the next 12 months, and confirm that they meet the criteria of the scheme having discussed this with Jersey Business.
- The business must confirm that it has sought to borrow to support it through its financial difficulties, either through commercial options or the Business Disruption Loan Guarantee Scheme.
- Can show a detriment to turnover of 50% due to public health intervention (for example, the restriction on 40 people and subsequently 20 people gathering together, people; being closed to trade or cannot operate in accordance with the prevailing public health advice; majority of trade come from visitor to the island).
- The business must have a business licence as at 1 October 2020.
- The business must be registered for GST and have a minimum turnover of £300,000.
- The business cannot be a beneficiary of the Visitor Accommodation Subsidy Scheme.
- The States of Jersey must not be a shareholder.
- The business must not be grant funded by the States of Jersey.
Use the link below to access the Jersey Business Health Check
The subsidy payable is the amount needed to break even in that month or 80% of designated fixed costs whichever is lower.
Fixed costs, accounted for on an accruals basis consistent with previous periods include:
- Rent payable on business premises where the landlord is not a party connected to the business*
- Interest on mortgage payments; repayments of capital are not covered by the Scheme
- Rent/leasing of equipment where the lessor is not a party connected to the business*
- Maintenance of fixed and leased assets essential to the operation of the business
- Utilities (gas, heating, electric, water, fuel, non-guest phones, internet etc.)
- Parish rates
- Software licences
- Essential subscriptions
- Licences (liquor, TV, tourism etc.)
- Audit/accounting fees
- Refuse collection
- Statutory staff training
- Pest control
- Group costs, where they are apportioned and charged to the business, if they are a cash cost to the head office company in that month and they are apportioned and charged in that month to operating businesses on a basis consistent with previous periods.
- Where the business operates from a private residence, only costs designated as business cost on a business tax return can be included under the above headings as the apportioned cost that is declared on a business tax return
*parties connected to the business include parties connected by common shareholders, directors or common ultimate beneficial owners, a company in the same group of companies and persons who are directors or owners of the business
- Salaries and other costs associated with the payment of staff are not included
The maximum support available to any particular business during the scheme is £250,000.
Applicants must show a 50% detriment comparing the total turnover in the last 12 months of operation (up to and including the month of claim) to the total 2019 turnover.
- Turnover is the total operating income including income from trading and any other sources of income, such as restaurants and shops, that the business may have.
- This includes (and is not limited to): the sale of products and services, commission receipts, business rental income, business bank interest or other business investment income, and payments received from business disruption insurance. Accruals accounting must be used for turnover calculations
- Before the deduction of any allowable expenses
Detriment is calculated by comparing 2019 turnover to the turnover of the business in the last 12 months up to and including the month claimed for. For example:
- If turnover in 2019 was £300,000 and turnover in the last 12 months up to and including the month of claim is £120,000 then 60% detriment has been suffered; the detriment test is met.
- If turnover for the last 12 months up to and including the month of claim was £180,000 then 40% detriment has been suffered; the detriment test is not met.
The scheme will cover the period of October 2020 to April 2021 inclusive and will open to applicants on Tuesday 5th January 2021. The claim windows are:
|Claim month||Claim window|
|October 2020||5th January 2021 – 26 February 2021 5pm|
|November 2020||5th January 2021- 26 February 2021 5pm|
|December 2020||5th January 2021 – 26 February 2021 5pm|
|January 2021||1 February 9am – 26 February 2021 5pm|
|February 2021||1 March 9am – 31 March 2021 5pm|
|March 2021||1 April 9am – 30 April 2021 5pm|
|April 2021||4 May 9am – 28 May 2021 5pm|
The following conditions apply and will be subject to a declaration in the application process:
- Applications to the scheme will be made monthly, in monthly arrears, with subsequent applications providing a revalidation of the qualifying criteria
- The monthly benefit under the scheme is capped at 80% of the fixed costs on an accruals basis in the month applied for
- Signed accounts for the financial period ending in 2019 and 2020 (when available) must be provided on request
- Applicants must make legally binding declarations as part of the application process to access the Scheme.
- For corporate applicants an extract of a minute of a board meeting of the company evidencing that the company has considered and agreed to the rules of Scheme and has duly delegated authority to a director or other individual to make the declarations required under the Scheme on behalf of the company will be required.
- For non-incorporated businesses a personal declaration by the registered business owner that they have considered the rules of the Scheme, agreeing to procure that the business will comply with the rules of the Scheme will be required. The business owner will make the additional declarations required under the rules of Scheme.
- Failure to comply with the rules of the Scheme will result in all monies paid under the Scheme becoming immediately repayable and any further access to the Scheme will be denied.
- Applicants must declare that they and their shareholders (where relevant) have considered all alternative options available and the subsidy is considered necessary to secure the continuity of the business
- Applicants must declare that they meet the prevailing conditions of the Co-Funded Payroll scheme (where it is benefiting), and has paid all relevant taxes and social security contributions due to the States up to date (allowing for deferrals where permitted)
- No dividends can be paid for a financial year within which a business participates in the scheme
- The business must declare that it has reviewed and appropriately reduced director salaries (or owner’s renumeration where relevant) in the context of applying for a taxpayer funded subsidy and must not increase director salaries or owner’s remuneration during the life of the scheme
- All funds paid under the Scheme must be listed as a contingent liability in the accounts of the applicant business
- The applicant business must declare that taking account of forecast revenues including all government support grants, it is a going concern and not in immediate danger of insolvency, winding up or ceasing to trade on a permanent basis
- The applicant business agrees to be audited to verify eligibility and compliance with the rules of Scheme, and to open its financial data to government auditors for that purpose
- Beneficiaries under the scheme and amounts paid will be made public
- If it is found that a business has been profitable in a month in which it has made a claim, it must repay the profit up to the total value of the claim
- The subsidy payable is the amount needed to break even in that month or 80% of designated fixed costs whichever is lower