Coronavirus Business Rates Grant which tax year

Which years tax Return should to Coronavirus Business Rates Grant be reported on

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I have read conflicting artices on which tax year the Coronavirus Business Rates Grant (typically £10,000 for small clients) should be reported in. One post from a reuptable Audit and accountancy firm states that 11/3/20 should be the date on which the income should be recognised, so using traditional accrual accounting the tax year is 2019/20, despite the funds being received in 2020/21. However I cannot find any HMRC guidance on this, and have contacted them by telephone (a monumental task,!!!!!). They could not point me to any guidaance on the matter on the HMRC website, but after consulting with a few collegues told me they think it should be reported in the year in which it was received, ie  2020/21 which I think is in line with the accounting treatment of other grants. In order to save my sanity could anyone confirm or dispute this please.

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By Jane S-D
18th Jan 2021 16:49

I've been on a course that suggested it should be declared when received.

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By Paul Crowley
18th Jan 2021 16:53

Loads of threads on this

Cash accounting when received

Full accounting when entitled

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Replying to Paul Crowley:
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By Cm15221
18th Jan 2021 17:24

Hi Paul
What is the entitled date of the Grant is it 11/3/20 as I state in my post? Thakyou for your help

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Replying to Cm15221:
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By Paul Crowley
18th Jan 2021 21:50

Yes
But see below
The accounting live worth viewing

20 Minutes or so in

The issue is self employed rather than companies

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Replying to Paul Crowley:
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By Cm15221
19th Jan 2021 00:40

Paul
Sorry to be a pain but I cannot find the video/ webinar that’s been referred to. Are you saying that for self assessment it’s the date received of the grant that determines which tax year it falls into? In which case for most if not all it’s 2020/21 as HMRC have told me

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Replying to Cm15221:
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By Paul Crowley
19th Jan 2021 01:19

https://www.accountingweb.co.uk/self-assessment-in-lockdown-grants-tax-r...

No Strict rules per FRC and HMRC are entitlement date

That was 11 March
But see Rebecca, 30minutes in

If HMRC told you 20/21 then HMRC were wrong
BUT if accounts are on cash basis ( no creditor for accountancy) then it is date received

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By Youareatit
18th Jan 2021 16:54

Hasnt this be covered a million and one times already? Or maybe Im dreaming.

Was covered by Rebecca B on her update vid this morning. Take a look at that.

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Replying to Youareatit:
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By piggybank
18th Jan 2021 19:12

Hi,
I believe that the FRC has confirmed that the small business grant should be recognised when the business is entitled to it. This grant was unconditional so therefore the 11 March, date of announcement, is the date to recognise. Have a look at the Self-Assessment webinar from this morning. Or there is more info here too https://www.rsmuk.com/coronavirus-adapting-to-change/outsourcing-and-com...

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By Wanderer
19th Jan 2021 03:26

Whilst respecting and understanding the 11 March date the guidance given here

https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

states that 11 March is the Eligibility date but the Entitlement date is "Earlier of the date of payment of the grant by the Local Authority or 1st April 2020".

Anybody's views change with this in mind? Particularly companies with 31 March year ends?

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Replying to Wanderer:
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By Geoff56
19th Jan 2021 09:02

That clinched it for me.

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Replying to Wanderer:
RLI
By lionofludesch
19th Jan 2021 10:58

Can't argue with that.

If entitlement is the criterion then the above reference is crystal clear.

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