Here is the situation: 2 Sole Traders are occupying the same business premises eligible for the COVID-19 Small Business Grant in England. Both Sole Traders are on the Small Business Rates Relief records, so both have the same reference number. Only one application was allowed via the Greenwich Council website with one reference number.
1) Is it possible to apply twice by each Sole Trader separately with the same ref number?
2) If not, how should splitting the grant be approached for accounting? Only one recipient was allowed to put their details down (the system wouldn't let the same ref number to be used twice) so the whole grant will technically be income for Sole Trader #1. Should the Sole Trader #2 simply invoice #1 for half of the grant and it all gets treated as income and expenses?
Replies (3)
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I'd say if they share the same premises then the grant should also be shared. If they both pay half the rent. Split the grant by half also.
It comes down to an agreement between themselves.
Thinking they can each claim £10000 (or whatever) is doomed to failure and embarrassment on your part.
This is one of those scenarios where you really find out who you can trust when the chips are down.
Whichever sole trader is on the business rates bill is the one who will be getting the grant. If that person is generous enough to share that grant with the other, fantastic. If not, get ready for disappointment.