Small business grant

Redd6767

Hi.I know the small business grant is a taxable income.But as it is a gift as such, am I right in saying that it is not part of vat turnover?

Illusionary

That does appear to be the case, yes.
http://www.marcusward.co/vat-treatment-of-coronavirus-grants/

Grumpy_chap

I applied for the CJRS through my company and the VAT question was important to me as I use flat rate scheme.  My accountant advised to enter the grant as income but not turnover, so therefore outside of VAT.  That approach also seems consistent with the idea that the grant covers the employers cost to furlough, so even the employers NI is added to the claim.  If it was subject to VAT, then the VAT would need to be added to the claim so it is there to be paid back.

Jeremy535897

Grants are normally outside the scope of VAT (for example rural payment agency grants).