Covid grants

HMRC has issued a reminder to companies about covid grants. The pressure on businesses in the midst of the lockdown seems like a distant memory for some, but during this time, many businesses took covid grants from the government.  Guidance has been issues as a reminder to declare coronavirus grants on company tax returns

Coronavirus (COVID-19) grants and payments issued by HMRC to support businesses and self-employed individuals during the pandemic are taxable.

If a business needs to complete a Company Tax Return (CT600) they must include any Coronavirus support payments made to the company. When calculating the taxable profits in the usual way, the following must be included as income:

  • Coronavirus Job Retention Scheme (CJRS) grants
  • Eat Out to Help Out payments
  • coronavirus support payments made by local authorities, devolved administrations or other public authorities.

If an agent is completing a company tax return on behalf of the company, they must be told what coronavirus support payments the company received. This is particularly important if another agent made a CJRS claim on behalf of the company or the company claimed a grant directly.

A CJRS grant, or an Eat Out to Help Out payment, or both, they will also need to be included in the specific boxes provided on the CT600.

Companies should put:

  • taxable grants and payments in boxes 471, 472 and 647
  • CJRS or EOHO overpayments in boxes 473, 474 and 526.

To discuss this or any other company matter, contact us.

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