Happy friday!
Thoughts on tax point for the £10k rates grant received by a sole trader at the back end of March 2020?
Per this document: https://assets.publishing.service.gov.uk/government/uploads/system/uploa...
"This support will take the form of two grant funding schemes in Financial Year 2020- 2021, the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund."
From the above I take it the tax point would be 6th April 2020.
However sole trader on cash basis and grant received in March 2020 would cause the 2020 profits to be inflated by the 10k (profits not affected by that point) and 2021 will be much lower. Doesn't seem right to do it that way. Interested to hear others thoughts.
Ps. For companies I did find a great article by Steve Collins here: http://stevecollings.co.uk/accounting-for-covid-19-grants/
Replies (3)
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As far as I know. All the grants and schemes fall in to 20/21.
Thats how I'm treating it any way.