Coronavirus grants to businesses, employers and individuals are taxable

Jun 29, 2020
Coronavirus grants to businesses

 

We are reminding businesses, employers, employees and self-employed individuals that grants from the various Government schemes to provide support during the Coronavirus outbreak are taxable in the same way as other income.

Payments made under schemes including the Coronavirus Job Retention Scheme (CJRS), the Self-Employment Income Support Scheme (SEISS), the Coronavirus Statutory Sick Pay Rebate Scheme (CSSPRS) and others are all considered to be taxable income.

The position had been set out in the various guidance documents for the schemes but has now been underscored by a series of Government amendments to the Finance Bill 2020, currently before Parliament, intended to ensure that income from these schemes is taxable.

Concerns had been raised by groups, including the Low Incomes Tax Reform Group (LITRG), that the use of the word ‘grant’ concerning SEISS, in particular, could lead to the mistaken impression that funds received were not taxable income.

While such payments are taxable income, it remains the case that the actual amount of tax

© Walker Begley 2016. All rights reserved. Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. WB Financial Management Ltd is an appointed representative of LJ Financial Planning Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 5280582

  • Privacy
  • Terms & Conditions
  • VAT number: 107 1775 25
  • The information required by the ‘Provision of Services Regulations’ is on display at our office.