HMRC has cautioned that any coronavirus (COVID-19) support grants or payments must be declared on corporate tax filings and that the funds and payments are taxable.
Company tax returns must be filed within 12 months of the end of the accounting period.
The deadline for paying company tax is determined by the number of taxable profits and the end of the accounting quarter. Unless profits surpass £1.5 million, it is usually nine months following the conclusion of the accounting quarter.
Grants to be included as taxable income include:
- Coronavirus Statutory Sick Pay Rebate
- Coronavirus Business Support Grants (also known as local authority grants or business rate grants)
- Coronavirus Job Retention Scheme (CJRS) grant
- Eat Out to Help Out payment.
If a company received any of these payments, 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, the first time, including any COVID-19 support payment declarations. Support and guidance is available on GOV.UK.’