Don’t forget to declare coronavirus support grants and payments in company tax returns, says HMRC

Coronavirus support grants and payments must be declared in company tax returns, HM Revenue & Customs (HMRC) has reminded businesses.

The deadline to file a company tax return (CT600) is 12 months after the end of the accounting period it covers.

According to the tax authority, any taxable Covid-19 grants or payments received throughout the pandemic should be recorded as income for the purpose of calculating taxable profits.

This could include test and trace or self-isolation payments in England, Scotland and Wales, Coronavirus Statutory Sick Pay (SSP) Rebate Scheme payments, or local authority Coronavirus Business Support Grants – such as the Small Business Grant Fund, the Retail, Hospitality and Leisure Grant Fund, or the Local Authority Discretionary Grant Fund.

Coronavirus Job Retention Scheme (CJRS) grants or Eat Out to Help Out payments, meanwhile, need to be included as income when calculating taxable profits and reported separately in company tax returns using the dedicated CJRS and Eat Out to Help Out sections.

Reminding businesses to declare grants and payments, Myrtle Lloyd, HMRC’s Director General for Customer Service, said: “We want to make sure companies are getting their tax returns right, first time, including any COVID-19 support payment declarations.

“Support and guidance is available on GOV.UK, just search ‘file my company tax return’.”

Any personal Covid-19 grants or payments, such as Self Employment Income Support Scheme (SEISS) grants, for the 2020/21 tax year must also be declared in your Income Tax Self Assessment. The deadline to submit your tax return and pay tax is 31 January 2022.

For help and advice with related matters, please get in touch with our team today.

Posted in Covid-19 - Loans, Grant and Deferrals.