Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 13 May 2020 12:35:50 GMT by Bryan Finegan
I recently scrapped my van and received a £7000 grant from the TFL scrappage scheme. My question is do I need to declare the grant as income or is the grant considered as non income and therefore tax free?
Posted Thu, 14 May 2020 13:23:00 GMT by HMRC Admin 4
Hi,

If you are a sole trader and have claimed capital allowances on the van then the money received would be treated as income

and you will need to consider if there are any balancing charges due on this. See

Capital allowances and balancing charges (Self Assessment helpsheet HS252)

If you are not a sole trader then the grant money is not treated as taxable income.
Posted Mon, 25 May 2020 19:12:26 GMT by Bryan Finegan
Thanks for the help. I also claimed back the VAT on the purchase of the vehicle, do I need to do anything regarding my VAT returns?
Posted Fri, 29 May 2020 12:44:00 GMT by HMRC Admin 2
Hi,

Please refer to section 4.6.5 of the following guidance with regards to the VAT liability of grants: 

VAT guide (VAT Notice 700)

VATSC06311

I hope this helps.
Posted Thu, 04 Feb 2021 22:24:37 GMT by Robbin
Hello, I have been chasing TFL to qualify for the scrappage scheme since early Dec and it's now Feb. I have been rejected once and told to reapply, I made sure I oversubmitted ALL relevant info and am qualified. The problem is I cannot get in touch with TFL regarding this application and they have not come back to me in the 10 days advised. All phone numbers are answered and I'm told to email the TFL Scrappage Scheme, all answers are to be given to me in 10 days. I never hear back from my emails nor do I have a response from my application and it's been 15 days. I have a lot of pressure to get this done and am wondering if anyone has any advice on this forum - desperate!!! Not impressed!!! Thank you
Posted Fri, 05 Feb 2021 11:17:31 GMT by HMRC Admin 2
Hi,

Sorry, we can only answer HMRC questions on this forum.

Thank you.

You must be signed in to post in this forum.