Accounting for Grants in End of Year figures

CJRS and Local Gov't grants accounting

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I'm sure I read that HMRC has said that the CJRS grants should be treated as other income and not offset against salaries.  Is that right as my accountant has offset the furlough monies from the gross salary figure for the year and has also put a negative figure in under Rates rather than treating the local government grant as other income.  Could anyone advise please.

 

Replies (6)

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By Wanderer
20th Jan 2021 10:56

Have you raised your concerns with your accountant? If so what did they say?

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Replying to Wanderer:
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By Rosemary Nicholson
20th Jan 2021 12:21

Interestingly they said the grant monies should not be treated as turnover! Clearly they shouldn't. I have said they should be treated as Other Income and have insisted that the offset salary CJRS monies are moved and also the negative balance under Rates should also be moved and recognised as Other Income. It will be interesting to see what response I get now.
Thank you for your help - sometimes you just need someone else to be the sanity check.

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Replying to Rosemary Nicholson:
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By Paul Crowley
20th Jan 2021 13:03

First line correct
But negative rates?

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By Paul Crowley
20th Jan 2021 11:41

Your accountant clearly does not follow Aweb
Or the advice from other sources

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By SXGuy
20th Jan 2021 13:02

Your accountant is simply wrong. And I wonder what other mistakes are being made as well.

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