Coronavirus grants and support payments

HMRC has updated its guidance to confirm that covid-19 grants and support payments are taxable and need to be declared on company tax returns.

Reporting coronavirus (COVID-19) grants and support payments sets out which grants and support payments should be reported on tax returns and, in a new addition to the section How to report a grant or payment, confirms the following for company tax returns:

• Companies which received a grant under the coronavirus job retention scheme (CJRS) or an eat out to help out payment, will need to include the grant/payment as income when calculating taxable profits in line with the relevant accounting standards and report the grant/payment separately on the company tax return using the CJRS and eat out to help out boxes.
• Companies should also record all other taxable covid-19 payments as income when calculating taxable profits.