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

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.'

About us

Higgisons was formed by John Higgison in Oxford Street in 1965 and was originally part of the Accountancy Tuition Centre until James McHale became managing partner and the firm moved to its City Road premises in 1982.

We like to become involved at the planning stage of the formation of a business venture to ensure that it is structured as flexibly and efficiently as possible so that it can cope with changes in legislation or personal circumstances.

Higgisons Chartered Accountants
Higgison House
381-383 City Road
London
EC1V 1NW


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