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Posted Thu, 25 Feb 2021 19:15:22 GMT by okfine
Dear Sir or Madam, I ussually submit our CT600 via HMRC portal, not using any additional software as the company is small. I have read that the furlough grant needs to be treated as Other income in accounts, not a trading income or turnover. Can I still submit my accounts and CT600 using HMRC portal, as looks like there are no choice for other income? Many thanks, Oksana
Posted Wed, 03 Mar 2021 17:31:00 GMT by HMRC Admin 10

Hi

My understanding is that furlough grants are treated as trading income, like revenue grants.

Salaries and wages are deducted from a company’s trading income.

Since furlough grants subsidise employers so that they can continue paying staff wages, the income ought to be treated as trading income.

Please look at the HMRC BIM as per the link below.

If you require further assistance, I would advise you seek advice from a Tax Agent/Accountant.

Please see response below from one of our Techs regarding the customer query:

My understanding is that furlough grants are treated as trading income, like revenue grants.

Salaries and wages are deducted from a company’s trading income. Since furlough grants subsidise employers so that they can continue paying staff wages, the income ought to be treated as trading income.

You can advise the customer to look at the HMRC BIM as per the link below. If they require further assistance, I would advise them to seek advice from a Tax Agent/Accountant.


Business Income Manual

Thankyou.

Regards.

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