Are Covid grants to a social club taxable?

Normally there is no tax due on mutual trading but what about the Covid grants received?

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We know that in general Covid grants are taxable, however are Covid grants to a social club taxable where mutual trading exists? Would the answer be the same for a non profit making golf club receiving Covid grants? These clubs/associations would not usually be paying corporation tax.

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By the_drookit_dug
19th Nov 2020 12:42

I'd say it should follow the taxable status of the employee costs you're claiming for - which should after all be equal to or more than the claim.

So if wages are 30% taxable, 70% non taxable, then the grant is 30% taxable, 70% non taxable.

(Edit: sorry, I was thinking purely of CJRS)

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By Paul Crowley
19th Nov 2020 11:36

There are lots of grants
Look at them one at a time

Council grant yes
See latest Aweb live with Rebecca

https://www.accountingweb.co.uk/cjrs-and-covid-support-measures

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Replying to Paul Crowley:
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By Southbankdelboy
19th Nov 2020 11:37

Paul Crowley wrote:

There are lots of grants
Look at them one at a time


Thanks for your reply, we are talking about the £10k/£25k grants based on rateable value, and furlough claims.
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By Wanderer
19th Nov 2020 11:54

You'll need to do a good search on A Web. I do have it in mind that somebody found & posted a reference that stated they were non taxable.

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Replying to Wanderer:
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By Tax Dragon
19th Nov 2020 12:27
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