14 Taxation and non-specific grant income Notes to the core accounting statements Nottinghamshire Fire and Rescue Service

In 1999 he joined the Corporate Finance team, assisting clients with mergers and acquisitions and finance raising. In 2004 Grant went on to head up the Business Services team in Carlisle, looking after owner managed businesses in the Carlisle area, and was made Partner in 2009. The UK is currently experiencing an unprecedented rise in household energy bills, driven by rising global energy prices. A performance-related condition is defined in the glossary as ‘a condition that requires the performance of a particular level of service or units of output to be delivered, with payment of, or entitlement to, the resources conditional on that performance’.

• Thus the income and expenditure will cancel each other in your accounts, not affecting your profit or tax figures.
• Here at Friend & Grant, we have a team of experts with a huge variety of specialist knowledge that just can’t stay contained!
• Careful allocation is therefore needed, for example, when a worker has been furloughed for 1 week in March 2020 and 2 weeks in April 2020.
• Examples of such assistance are tax holidays, investment tax credits, accelerated depreciation allowances and reduced income tax rates and users are directed to Section 29 Income Tax for issues pertaining to taxation.
• This is not unusual, given that there is no minimum economic impact you must have suffered in order to qualify as ‘adversely affected’.

If the grant is for expenditure that appears in your profit and loss account and you can defer the grant income (as above) then you may not have a tax liability on the income as it will be matched with its intended expenditure. Thus the income and expenditure will cancel each other in your accounts, not affecting your profit or tax figures. If the grant relates to equipment or other fixed assets then the grant income is deferred, and released to the profit and loss account to match with the depreciation of the grant purchased asset. The most important point to consider in regards to grant income, is whether the income really is a grant.

Interaction of filing extension when filing parent consolidated accounts

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. Our June 2023 Newsletter with tax updates including Employment Related Securities, HMRC Interest rate rising and company car fuel rates. However, Friend & Grant serve London, the South East and the rest of the UK with straightforward, practical advice.

This being the case, we recommend that businesses making use of the Government’s grant funding seek advice and support when preparing their accounts to ensure grant income is correctly reported. Details of the terms for these grant funds are still being released, however, based on the currently available information, these local authority grants do not have https://grindsuccess.com/bookkeeping-for-startups/ any performance conditions attached, as they are designed to provide immediate financial support. They are therefore to be recognised immediately in income once the entity is satisfied they have the entitlement. The government has clarified that “Payments received by a business under the JRS scheme are made to offset these deductible revenue costs.

Accounting

I was starting my own business and looking to make sure everything was kept in order whilst feeling like I was in control of my companies finances. Everything is available to me no matter where I am in the world, I can see how my business is doing within a few seconds. Xero has given me the freedom to spend my time doing what I set out to do, grow my business.

If a SEISS grant has been paid for the wrong amount or if you were not entitled to it, you may need to repay it to HMRC. If you need to repay part or all of a SEISS grant you have received it can affect your tax credit award. If you are self-employed then turnover should be the amount you would include in either box 9 (self-employment supplementary short pages) or box 15 (self-employment supplementary full pages) when completing your Self Assessment tax return.

Accounting for grant payments

The benefits of EBSS AF are primarily in the form of additional energy consumption and avoiding health disbenefits from dangerous underconsumption. There will be social costs from greater negative externalities of energy consumption than in the counterfactual, however given the scale of price increases this intervention is not expected to place us off track for meeting our carbon budgets. Economic appraisal was undertaken to assess the value for money of EBSS AF in accordance with the principles set out in HM Treasury’s Green Book. The analysis underpinning the assessment was independently quality assured following best practice in the BEIS evidence framework. Development of EBSS AF has been in accordance with the relevant HM Government policies including HMT Green Book guidance and Managing Public Money. Sections 13(1) and 13(3)(b) of the Energy Prices Act 2022 provide powers to address the issues of contracting out to a third party in respect of a transferred matter in Northern Ireland.

• This applies even if you made the amendment before making the claim for SEISS 4 and/or SEISS 5.
• The date by which you must notify HMRC is 90 days from the date you received the grant payment which was overpaid or to which you were not entitled.
• Our family business has been supported by Armstrong Watson over the past 40 years, this alone is testament to the quality service and invaluable advice they provide us.
• There are income sources matching those descriptions that aren’t actually grants, so you need to be careful.
• The government provided support for the self-employed in the UK under the Self-Employment Income Support Scheme (SEISS).

As part of your business plan, an accountant can help you plan out your finances. Cut-off or allocation questions may arise though, as the worker may be furloughed for a period of time spanning the year end. Careful allocation is therefore needed, for example, when a worker has been furloughed for 1 week in March 2020 and 2 weeks in April 2020. The income should be allocated between the accounting periods systematically. Please refer to coronavirus and FRS 102 articles accounting for tax and provisions, onerous contracts and insurance recoveries, the latter explaining that provisions for future operating losses (eg for furloughed staff) are generally not recognised. You will need to pay back any amount that you received to which you were not entitled.

Outstanding Contribution to the Accountancy Profession award

This may mean that those with March year-end accounts may need to check how the income is reported. The first and most important point to consider in regards to grant income is whether the income really is a grant or whether it is instead a loan or some other form of financing. Our later life services include Inheritance tax planning, we work with you to identify tax saving solutions for your estate to protect wealth for future generations. At Friend & Grant we believe in the power of strong long-lasting relationships. As accountants based in Kent, we work with select business owners taking the next step towards exponential growth and high net worth individuals eager to take significant steps to protect and preserve their personal wealth.