If your business received financial support during the pandemic, then be sure to include it in your next corporation tax return. These grants and support schemes were a lifeline for struggling businesses during the height of the COVID-19 crisis and as a result many took advantage of the support available.
You will need to include any grants or support payments which were offered by the Government. This financial support constitutes taxable income, and it is important to correctly detail the support you received on your return.
Which COVID support grants/payments should be included?
- Coronavirus Statutory Sick Pay Rebate Scheme (SSPRS)
- Coronavirus Job Retention Scheme (CJRS)
- Self-Employment Income Support Scheme (SEISS)
- Test and trace/self-isolation payments (England, Scotland, Wales)
- Coronavirus Business Support Grants (issued by Local Authorities or other public authorities)
Business Support Grants include the Small Business Grant Fund, Retail, Hospitality and Leisure Grant Fund and the Local Authority Discretionary Fund.
The above should all be included as income when calculating taxable profits.
What support doesn’t need to be included?
As they do not constitute coronavirus support payments/grants, the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS) do not need to be included on your company (corporation) tax return.
Support with your Corporation Tax Return
If you are uncertain about any aspect of your Corporation Tax Return, including the inclusion of COVID-19 support payments, don’t hesitate to contact the Kingston Burrowes team.
