Payroll Legislation

Declaring coronavirus grants on tax returns

Legislation

Declaring coronavirus grants on tax returns

Due Date

Ongoing

Summary

Coronavirus (COVID-19) grants to support businesses and individuals during the pandemic are taxable. If you claimed grants from the Coronavirus Job Retention Scheme (CJRS), Eat Out to Help Out (EOTHO), Self-Employment Income Support Scheme (SEISS), or any payments made by local authorities and devolved administrations, you’ll need to report this as income on your Company Tax Return (CT600), partnership return (SA800) or the self-employment pages of your individual tax return (SA103) depending on your business type.

If you need to complete a Company Tax Return (CT600) and your business has claimed grants from the CJRS, EOTHO, or any payments made by local authorities and devolved administrations, you’ll need to report this as income when you calculate your taxable profits.

If you have already filed a return and have not declared your coronavirus support grants or payment as taxable income, you will need to submit an amended return.

If you received a CJRS grant you will also need to declare the amount you received (box 471 in the CT600 tax return), the grant you were entitled to (box 472), and any CJRS overpayment already assessed or voluntarily disclosed (box 473) during the accounting period covered by your CT600 return. You will need to complete box 474 if you received any EOTHO overpayments.

These boxes were added to the CT600 on 6 April 2021 so if you filed before 6 April 2021, you would have been unable to declare this.

If you or your agent submitted a CT600 return without boxes 471 to 474 and 526, or left the boxes incomplete, and you have a CJRS or EOTHO overpayment to report you need to amend your return.

If all coronavirus support overpayments are already repaid or have already been assessed before the tax return is filed – and there’s no coronavirus support schemes overpayment due – you do not have to correct your return.

Payroll Legislation Guide

This FREE seasonal guide includes advice on payroll legislative updates as they happen – quarterly advice on all updates in an easy-to-read format.

Download Guide

Making payroll & HR easy