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income taxable for companies

other incomes which I need to know which one is liable to corporation tax

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I would be geateful if anyone could help me with the followings

basically, I am not sure whether they are all liable to corporation tax

Received:

Funding for nursery for employment of a student

enjoy benefits-grant

funding from university college for study- incentive payment made to nursery

payment received from training because of completion of training for employees

HMRC- Claim for job retention scheme

Received money from council 

 the nature of the business is : Pre-primary education services

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Hallerud at Easter
By DJKL
07th Aug 2020 10:53

Presuming the nursery is the entity subject to corporation tax then all of these appear to fall into the calculation of CT possibly due by the nursery.

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ALISK
By atleastisoundknowledgable...
07th Aug 2020 11:42

What did your accountant say when you asked them?

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Replying to atleastisoundknowledgable...:
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By Tax Dragon
07th Aug 2020 12:19

Careful....

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Replying to Tax Dragon:
ALISK
By atleastisoundknowledgable...
07th Aug 2020 13:13

I should have been clearer - I was thinking aloud, not asking a question.

Point taken though and wrist lightly tapped.

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My photo
By Matrix
07th Aug 2020 11:54

I would start at first principles with this one. There is a key piece of info missing. (Whether it is a charity or not.)

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Replying to Matrix:
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By shakiba
07th Aug 2020 12:27

No, this is not a charity

The accountant trusts some income might not be taxable

They argued because some income like government scheme, Grant or helping with the nursery or the job retention scheme grants etc are not earned during the course of the business, then its not taxable

I disagreed but I wanted to make sure that I am correct.

Thank you in advance

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Replying to shakiba:
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By Tax Dragon
07th Aug 2020 12:44

The accountant's argument sounds like that of a cowboy. Why did the company receive the grants? Because it is in business.

If some grants (and similar payments) might not be taxable, it's because of specific provision to that effect. The general rule is that company incomings are taxable.

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Replying to Tax Dragon:
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By jonharris999
07th Aug 2020 15:42

There has been quite a bit of chat, and some misinformation, about this on creative industry soc media.

For example actors, generally self-employed, might have received hardship grants from charitable foundations intended to cover personal expenses urgently.

Conversely, sole trader producers might have received grants from the Arts Council, or similarly from Foundations, to put towards the costs of artistic activities, which might quite legitimately include payments of fees to artists.

The former isn't taxable income and the latter is. It is sometimes a little hard to tell the difference between these two in some cases. There has been, as I say, some unhelpful comment on social media erroneously telling punters that all such income is definitely one or the other.

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Replying to jonharris999:
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By Tax Dragon
07th Aug 2020 16:32

Ah, OK, that provides a bit more context, thank you.

And as you say, the tax treatment of payments to individuals may well be more nuanced.

However, one of the many differences between companies and humans is biological - e.g. companies don't need to eat to stay alive. Such differences cut both ways, taxwise. Humans can fall foul of the "wholly and exclusively" requirement because of personal needs. Companies by and large don't have personal needs, so W&E is much less of a concern when thinking about expenses.

But conversely when, as in the OP, the issue is money coming in, while for a human it might be an entirely personal matter, for a company it's nearly always related to the business and (absent a specific tax rule to the contrary) taxable as part of profit.

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Replying to Tax Dragon:
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By jonharris999
07th Aug 2020 17:41

Yes. Quite.

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Replying to Tax Dragon:
blue sheep
By NH
07th Aug 2020 21:28

I thought we had settled this, the term cowboy is cowist, please use the term livestockboy or we may have complaints

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Replying to shakiba:
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By Paul Crowley
07th Aug 2020 17:54

Did you and your accountant get confused about Corporation tax and VAT?

If not then I am at askance on his understanding of corporation tax.
(I am of couse assuming the accountant is accountant in practice charging you fees, not some helpful well meaning volunteer)

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