Editorial team AccountingWEB.co.uk
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Any Answers Answered: How to account for furlough repayment


WATCH: TaxTV’s Giles Mooney and Tim Good tackle two conundrums from Any Answers that deal with accounting for furlough repayment and the calculation of private motoring while working from home.

16th Apr 2021
Editorial team AccountingWEB.co.uk
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To view the full questions and AccountingWEB reader answers click on the links below:

Working from home - AIA electric car - private use

The first question comes in from AccountingWEB reader John R. His self-employed client is some distance from his home and historically he would have driven to and from the office each day and the calculation of private motoring would have been about 70%. He is now working from home, like a lot of people due to the pandemic. The AccountingWEB user wants to know, does he need to change the private motoring percentage now he’s not travelling there and back every day? 

The client has since sold his car, and there is a significant balancing allowance. In a follow up question, Giles and Tim consider how he should calculate the private fraction based on these changes. 

How to account for furlough paid back to HMRC

Second question comes from Kalaccontrol and relates to returning furlough grants. The user has been claiming furlough, presumably as an employer, from March 2020 to December 2020. Having dealt with the year end and corporation tax to 21 October 2020, they’ve now realised they’ve had a pretty good year and don’t feel morally they should take the money. And now, they’re thinking of paying it back to the government. The question, therefore, is in the second account, how on earth do we deal with a refund of furlough money?

For the latest episode of TAXtv visit PTP Interactive.​ TAXtv is a monthly tax update programme available as an annual subscription, (11 issues plus budget editions) to view online, download from the internet or watch on DVD.


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