Covid-19 support grants
Remember to declare any coronavirus (COVID-19) support grants or payments on your company tax returns as they are taxable.
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 you received any of these payments, you will need to do the following on your 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.
Claims portal re SSP reopened
HMRC has reopened the portal for small employers to again claim refunds for coronavirus (COVID-19)-related sick pay.
The Statutory Sick Pay Rebate Scheme (SSPRS) was reopened from 21 December 2021 for employers with fewer than 250 employees.
The maximum claim per employee is two weeks at the statutory sick pay (SSP) rate of £96.35 per week (£192.70 in total). The employer’s claim is also capped at the number of employees in its PAYE scheme on 30 November 2021.
HM Treasury and HMRC have not announced an end date for the SSPRS. However, the legislation states that a claim may not be made after the end of 24 March 2022.
Consumer group Which? has urged taxpayers to avoid using ‘refund firms’ to claim tax rebates. Its best to go directly to HMRC.
Two in five of those contacted by a tax refund company said they used it in order to claim a tax rebate. Such companies often charge fees anywhere between 25% to 48% of the rebate an individual receives. Extra admin fees and VAT are often added on top, according to Which?.
See link: Which? website