HMRC has had a time of it setting out where the CV grants are to be shown on the latest tax returns.
On the full tax return (not the short one which cannot be downloaded and is only used via the HMRC web site) there is box 20.1 on page TR8 (the rounding up and signing page) which asks for ‘x’ if grants were received and are now ‘included as taxable income when calculating profits in the period of this return’.
However, some people use an accounting year other than 31 March/5 April and will have received the grants after the year end reported in their tax return (say if they still use 30 April as their year-end).
The FA2020 Act Sch. 16 says ‘...CV support payment ... is a receipt of a revenue nature for income tax purpose... and is to be brought into account in calculation the profits of that business’. (Since then, In response to the ongoing CV situation there is an amendment to the FA2020 tabled for the FA2021 to say that grants are taxable in the year of receipt!)
So, following the HMRC notes for completion of the full tax return box 20.1 is to be completed to sweep up all the grants as ‘been included as taxable income in the relevant boxes of this tax return for the purposes of calculating your profits’.
For the self-employed this is covered by: Box 15 Your turnover ‘do not include CV support payments in box 15 (see box 16 and box 70.1).
So on to Box 16 ( headed) Any other business income (include CV support payments such as CJRS but not SEISS), brackets by HMRC. So not turnover but specific grant income CJRS, Eat out THO and any other HMRC, local authority or devolved admin. but not SEISS go in here and these then contribute to the taxable profit calculations.
On we go to: Box 70.1 SEISS Include the amount you were entitled to regardless of the dates your books or accounts were made up to.
So, we have got there with jumping out of and into 4 boxes.
If you also have Furnished Holiday lettings, box 20.1 remains relevant but the notes to the UK property pages have: Box 5 Income ‘If you received CV support scheme payments, include in box 5 the amounts you received’. (So, no separate SEISS box)