Call 0800 781 8783 - email principal@lloydbottoms.co.uk

COVID-19 support grants must be included on company tax returns

HMRC has warned that businesses must declare any coronavirus (COVID-19) support grants or payments on their company tax returns and stated that the grants and payments are taxable.

13 Jan 2022

HMRC has warned that businesses must declare any coronavirus (COVID-19) support grants or payments on their company tax returns and stated that the grants and payments are taxable.

The deadline for filing company tax returns is 12 months after the end of the accounting period it covers.

The deadline for taxpayers or agents filing company tax returns (CT600) is 12 months after the end of the accounting period it covers. The deadline to pay corporation tax will depend on any taxable profits and when the end of the accounting period occurs.

Taxable grants include:

  • test and trace or self-isolation payments in England, Scotland and Wales
  • Coronavirus Statutory Sick Pay Rebate
  • Coronavirus Business Support Grants (also known as local authority grants or business rate grants).

If a company received a Coronavirus Job Retention Scheme (CJRS) grant or an Eat Out to Help Out payment, they will need to do both of the following on their CT600 tax return:

  • include it as income when calculating their taxable profits in line with the relevant accounting standards
  • report it separately on their company tax return using the CJRS and Eat Out to Help Out boxes.

Myrtle Lloyd, HMRC's Director General for Customer Services, 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.'

Download our TaxApp Now

Tax rates, tips and calculators at your fingertips

Find out more

Register for newsletter

Why not register to receive our Monthly Newswire?

Find out more

Try a site search Tax return, dividends, pension, budgets...

Contact us | Site map | Accessibility | Disclaimer | Privacy |

Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.

Lloydbottoms Chartered Accountants, 118 High Street, Staple Hill, Bristol BS16 5HH

We are a member of the Institute of Chartered Accountants in England and Wales and in our conduct are subject to its Code of Ethics which can be found at www.icaew.com/en/members/regulations-standards-and-guidance/ethics. This is available in English.

We confirm that we are licensed to carry on general accountancy and tax practice by the Institute of Chartered Accountants in England and Wales. Details about our registration as practicing members of the Institute of Chartered Accountants in England and Wales can be viewed at http://find.icaew.com using our postcode.

© 2022 Lloydbottoms Chartered Accountants. All rights reserved. We use cookies on this website, you can find more information about cookies here.