It is important to keep in mind that most COVID19 grants that have been received are being regarded by HMRC as taxable income just like any other taxable receipts and need to be reported to HMRC. The grants are considered income with regard to when the business is decidedly within the scope of either Income or Corporation tax.

Grants and measures that this treatment is extended to include:

·        Self-Employment Income Support Scheme

·        Coronavirus Job Retention Scheme

·        Coronavirus Statutory Sick Pay Rebate

·        Coronavirus Business Support Grants

·        Test and trace or Self-isolation payments

·        Eat Out To Help Out Scheme

It has been made clear by HMRC that tax will only be payable depending on the profits of the tax-paying business whilst also considering other business income and expenditure under usual tax rules. HMRC will also consider any other taxable income that the recipient may have as well as also looking at any personal allowances that the recipient is entitled to.

Recovering payments and charging penalties are also within HMRC’s power for situations where claimants have made COVID19 support grants that they were not entitled to. There is no need to report COVID welfare payments that have been received from local councils such as assistance with council tax payments or housing benefits.



The Bounce Back Loan, Coronavirus Business Interruption Loan and other such loans are not Coronavirus support loans and as such are not applicable as taxable income.