Seiss payments

Jeremy535897

maxmycardagain said:

SEISS grants ARE taxable and included in S/A forms/returns as are ARG payments

they are counted as business income, added to your turnover, which - less costs - gives you a taxable figure

Yes, SEISS grants are taxable, but you must not add SEISS receipts to your turnover in form SA103. There is a separate box for SEISS payments (box 27.1 on form SA103S, box 70.1 on form SA103F). If you add SEISS payments to turnover, and omit them from box 27.1 or 70.1, HMRC will auto correct the return and add them in, which will double count them. (In rare partnership cases you might add SEISS receipts to turnover, as explained in the notes to form SA104.)

What I said in my post is that you ignore SEISS grants in working out whether your trading profits are significantly reduced, when considering eligibility for SEISS 5. This has nothing to do with what goes on the tax return. It is not helpful when totally wrong statements are made about an important area like this.

maxmycardagain

yes, there is a new box for SEISS payments

have you any specific info on ARG grants?

Jeremy535897

I would not regard most grants as turnover. FRS 105 (accounting standards for small businesses) is interpreted by one commentator as follows:

"My business received a grant from our local authority (the Small Business Grant Fund). Should that be shown as income in our annual report?

The Small Business Grant Fund is a government grant with no future performance-related conditions. It should be accounted for in accordance with Section 24 of FRS 102 or Section 19 of FRS 105.

This means the grant will be recognised as income in the period in which it becomes receivable. This is likely to be when the scheme eligibility criteria were first published or, if there was uncertainty around eligibility, when confirmation of entitlement was received from the local authority.

The grant income will be shown within other income, with a corresponding debtor until the cash is received from the local authority."

From https://hillierhopkins.co.uk/faq/how-do-i-account-for-the-governments-coronavirus-support/

Other income for this purpose would be put in box 10 of SA103S. See:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/974065/sa103s-2021.pdf

As noted above (and as explained on SA103S), SEISS payments are not put in box 10, but in box 27.1 as I said earlier.

JJC1956

maxmycardagain said:

yes, there is a new box for SEISS payments

have you any specific info on ARG grants?

ARG are grants for non business ratepayers unlike LRSG which are grants for business ratepayers, you need to check your local council website for any info 

Jeremy535897

JJC1956 said:

maxmycardagain said:

yes, there is a new box for SEISS payments

have you any specific info on ARG grants?

ARG are grants for non business ratepayers unlike LRSG which are grants for business ratepayers, you need to check your local council website for any info 

I would be very surprised if any council website advised on the accounting treatment of grants. As I explained earlier, non-SEISS grants would be included in "other business income" (box 10).

JJC1956

Jeremy535897 said:

JJC1956 said:

maxmycardagain said:

yes, there is a new box for SEISS payments

have you any specific info on ARG grants?

ARG are grants for non business ratepayers unlike LRSG which are grants for business ratepayers, you need to check your local council website for any info 

I would be very surprised if any council website advised on the accounting treatment of grants. As I explained earlier, non-SEISS grants would be included in "other business income" (box 10).

Yes, but the poster already answered the question their self on the 11th of July, the day before the post I replied to, so I assumed the were just looking for info on ARG