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Adding value by
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Latest News

Mandatory vaccinations for those working in care homes
24/06/2021 - More...
The government has published its response to its consultation on making COVID-19 vaccination a condition of deployment

Tax Diary July/August 2021
24/06/2021 - More...
1 July 2021 - Due date for Corporation Tax due for the year ended 30 September 2020. 6 July 2021 - Complete and submit

Childcare top-up to cover summer activities
24/06/2021 - More...
As the school holidays fast approach, many parents face having to organise extra school holiday childcare over the

COVID support grants that are taxable

Source: HM Revenue & Customs | | 06/05/2021

We would like to remind readers that existing legislation is in place to ensure that COVID support grants are treated as taxable income in the same way as other taxable receipts. The grants are treated as income where the business is within the scope of either Income Tax or Corporation Tax.

This treatment extends to the Self-Employment Income Support Scheme (SEISS), the Coronavirus Job Retention Scheme (CJRS), the Coronavirus Statutory Sick Pay Rebate Scheme, any coronavirus business support grant scheme and any other support scheme payments.

HMRC’s guidance is clear that whether any tax is paid will depend on the business profits of the grant recipient (taking into consideration the grant and other business income and expenditure under normal tax rules), any other taxable income and personal and other allowances to which they are entitled.

The taxing of the COVID support payments is based on the fact that these payments are designed to substitute various income streams for businesses and individuals affected by the pandemic and hence should follow the same tax treatment.

HMRC also has the power to recover payments and charge penalties where claimants have made support grant claims to which they were not entitled.



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Milton Avis LLP
Chartered Accountants
Pitt House
120 Baker Street
London W1U 6TU

Tel : 020 3219 5860
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