HMRC has warned that businesses must declare any coronavirus (COVID-19) support grants or payments on their company tax returns and stated that the grants and payments are taxable.
The deadline for filing company tax returns is 12 months after the end of the accounting period.
The deadline to pay corporation tax will depend on any taxable profits and when the end of the accounting period occurs. It is generally nine months after the end of the accounting period unless profits exceed £1.5 million.
Grants to be included as taxable income include:
If a company received any of these payments, they will need to do both of the following on their CT600 tax return:
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
‘We want to make sure companies are getting their tax returns right, first time, including any COVID-19 support payment declarations. Support and guidance is available on GOV.UK.’
More information available here >>