growth accelerator grants

growth accelerator grants

Didn't find your answer?

is grant funding for growth accelerator taxable?

Replies (3)

Please login or register to join the discussion.

avatar
By chicken farmer
03rd Jul 2014 09:14

Yes
Unless its specifically not taxable, it is

But what actually is a growth accelerator? Sounds like fertiliser to me

Thanks (0)
avatar
By Sheepy306
03rd Jul 2014 10:13

More details

Can you provide more details regarding where the grant is coming from and is it being spent entirely? Sounds like a neutral net position to me, so the income is taxable but the expenditure will also be allowable for tax.

One of my clients is also about to do a business accelerator scheme, albeit on a small scale. The deal, as the client has explained to me, is that he pays £600 and receives £3,500 of business coaching from one of their mentors. What strikes me as odd (well, pretty much fraudulent) is that the client tells me that he will receive an invoice for £3,500 in order that he can claim the VAT back. But he only ever pays £600.

Net result is that the client receives £500+ of VAT refund, plus a 20% CT deduction on the £3,500. So he's quids in. I've not seen any paperwork to support this structure at present but if that is the case then I do wonder sometimes why we bother complying with laws and regulations when such schemes promoted by large (often government backed) are allowed.

Does your client physically receive grant money?

Thanks (0)
avatar
By Leo01
03rd Jul 2014 12:15

Growth accelerator

I have come across this as well. Couple of clients were recently approached by the so called 'growth accelerator coaches'. Apparently these are government backed training programmes with only £600 cost to the client ! There is quite a lot of information if you Google it.  The cases I came across, as I am told by the client, were  provided by or supported by Grant Thornton through intermediary trainers.

It didn't  much interest from the clients and they are not going ahead. However would be keen to know if any of your clients have used them and what was the experience?

 

Thanks (0)