Coronavirus support schemes

HMRC has advised as follows:

‘‘Grants and payments from schemes to support businesses during coronavirus (COVID-19) should be included as income when calculating your taxable profits in line with the relevant accounting standards.

If you are completing a company tax return on your client’s behalf, you will need to check the coronavirus grants they received; this is particularly important if another agent made a CJRS claim on their behalf, or they claimed a grant themselves from a local authority or another public body.

Visit GOV.UK to find out if you need to include a COVID-19 grant or support payment on your tax return."

Support schemes claims

Company has claimed support in this accounting period

• Select Yes if the company has claimed support in the period. You are only able to select Yes/No in periods ending on or after 19 March 2020 (the date from which the schemes started) and starting before 30 September 2021 (the date from which the schemes ended).

• Select No if the company has not claimed support in the period. You should also select No if the company is either a charitable company, other unincorporated charity or a community amateur sports club.

All support schemes amounts are included in the company's accounts and apportioned between each relevant activity

This is only available for selection if Yes is selected at Company has claimed support in this accounting period.

All support scheme payments are taxable and must be included in the company’s accounts. Where the company carries on more than one activity, the support scheme payments received must be apportioned between the activities as is appropriate to the circumstances.

• Select Yes if all support scheme payments have been included in the company's accounts and apportioned where relevant. This will allow you to complete the boxes in the Amounts received, entitlement and overpayments section.
• Select No if any support scheme payments have not been included in the company's accounts. You will not be able to complete the boxes in the Amounts received, entitlement and overpayments section.

Amounts received, entitlement and overpayments

You can only enter the amounts in each box if Yes is selected at All support schemes amounts are included in the company's accounts and apportioned between each relevant activity.

The amount entered in each of these boxes will be populated in the CT600 form for the accounting period (see boxes 471 to 473).

Total of amounts received per accounts

Enter the total of the amounts that have been claimed and included in the accounts (i.e. Profit and loss account), whether or not some or all of the amounts have been received.

In a period exceeding 12 months, you should apportion the amounts between the two accounting periods as is appropriate to the circumstances.

Total of amounts entitled to be claimed

Enter the total of the amounts that the company is entitled to claim for the accounting period, whether or not some or all of the amounts have been received.

Total of overpaid amounts already assessed or voluntarily disclosed

Enter the total assessed amounts, whether paid or unpaid, and amounts that have been voluntarily disclosed and/or returned to HMRC. Exclude any voluntarily disclosed amounts that have not been paid.

Eat Out to help Out scheme

This section is only displayed if any part of the accounting period falls in the period 03/08/2020 to 31/08/2020 (both dates inclusive). You can only enter the amounts in each box if Yes is selected at All support schemes amounts are included in the company's accounts and apportioned between each relevant activity.

Total Eat Out to Help Out scheme overpayments received and not repaid

Enter the total amount of receipts that have been overclaimed and not repaid for the accounting period. The amount entered will be populated in the CT600 form for the accounting period (see box 474).

Reimbursed discounts included as taxable income

You can only enter the amount in this box if there is an active trade in the accounting period.

Enter the total amount of discounts claimed and included in turnover or trading result for this accounting period. The amount entered will be populated in the CT600 form for the accounting period (see box 647).

HMRC examples to help you complete the boxes on this screen (and so populate CT600 boxes 471 to 474 and 526)

Overclaims of Coronavirus support schemes payments

The following examples will help you complete boxes 471-474 in CT600 returns to report overclaimed amounts received through Coronavirus support schemes.

Example A

Company A has no overclaims to report to HMRC nor has repaid voluntarily any amounts it received that it was entitled.

Company A received £100,000 in the accounting period covered by its return. It was entitled to receive all the grant it received.

Company A filled in box 471 and 472 with £100,000, Boxes 473 and 474 were £0 as Company A had no overclaimed amounts that they voluntary disclosed or assessed by HMRC.

Company A has filled in boxes 471-474 correctly and assessed that it has £0 overpayments to report to HMRC.

If Company A hadn’t included £100,000 in box 472, they would have effectively declared an overpayment of £100,000.

Example B

Company B received £100,000 of CJRS grants in the accounting period covered by its return. On reviewing the amounts, it received, Company B finds it was only entitled to £90,000. Company B filled in box 471 with £100,000. As they were entitled to only £90,000 and they have not voluntarily disclosed and paid the £10,000 back or had it assessed by HMRC, Company B fill in box 472 with £90,000 and box 473 with £0.

Company B has filled in boxes 471-474 correctly to self-assess a tax charge of £10,000 which is shown in box 526. HMRC will write to Company B with the reference number and payment details. This is not corporation tax so Company B should not pay this with the corporation tax liability.

Example C

Company C received £100,000 of CJRS grants in the accounting period covered by its return. On reviewing the amounts received, Company C finds it was entitled to £90,000. Company C filled in box 471 with £100,000. As Company C was entitled to only £90,000 of CJRS grants claimed, they fill in box 472 with £90,000.

Before Company C files its tax return, it voluntarily discloses an overclaim of £10,000 and repays this to HMRC. Company C puts £10,000 into box 473.

Company C has filled in boxes 471-474 correctly to self-assess that there is no tax charge.

Example D

Company D received £100,000 of CJRS grants in the accounting period covered by its return. On reviewing the amounts received, Company D finds it was entitled to £90,000 in the account period covered by its return.

Company D completes the CT600 and, before its files its return, discloses £10,000 overpayment to CJRS but does not make any repayment.

Company D filled in box 471 with £100,000. As Company D was entitled to receive only £90,000, they fill in box 472 with £90,000. Company D should still include £10,000 in box 473, even though they had not repaid the £10,000 at the time the return was filed. Company D has filled in boxes 471-474 correctly that they have no tax charge to self-assess in box 526. HMRC will issue a tax assessment to recover the £10,000 overpayment previously disclosed.

Example E

Company E received £100,000 of CJRS grants in the accounting period covered by its return. A HMRC officer assesses an overpayment of £10,000 via an Officer Assessment. Company E was entitled to receive £90,000.

Company E puts £100,000 in box 471, £90,000 in box 472 and £10,000 in box 473 and they have no tax charge to self-assess in box 526.

Example F

Company F received £200,000 of CJRS grants in the accounting period covered by its return. It was entitled to receive all the grant it received. After the end of its accounting period, it decides to voluntarily repay the full amount even though it was entitled to all the money it had received.

Company F's CT600 return must show that it received £200,00 in box 471 and that it was entitled to £200,000 by filling in box 472 as £200,000 also. Box 473 is filled in as £0 as this was a voluntary repayment of an amount the Company was entitled to it should not be included in box 473. Company F has correctly reported in box 526 that they have no tax charge to self-assess.

Example G

Company G received £100,000 in the accounting period covered by its return and at the time of completing the return it considered it was entitled to receive all the grant it had received. So, it filled in box 471 and 472 with £100,000.

After filing its return but during the usual amendment window, Company G discovered it had made an error and had overclaimed by £10,000. Company G should advise HMRC of the amended entry in box 472 of £90,000 and of the self-assessed tax charge of £10,000 in box 526. HMRC will write to Company G with the reference number and payment details. This is not corporation tax so Company G should not pay this with the corporation tax liability.

Example H

Company H received £300,000 of CJRS grants in the accounting period covered by its return. It was entitled to the full amount when it received the grant. The Company established after the end of the accounting period that it was not entitled to retain £50,000 of the CJRS because it did not use it for its required purpose. Before Company H files its tax return, it voluntarily discloses an overclaim of £50,000 but has not repaid this to HMRC.

Company H’s CT600 return must show that it received £300,000 in box 471 and that it was entitled to £250,000 by filling in box 472 as £250,000. Box 473 is filled in as £50,000 as the Company has made a voluntary disclosure of an amount overclaimed voluntary repayment (regardless of whether paid or unpaid). Company H has filled in boxes 471-474 correctly and they have no tax charge to self-assess in box 526. HMRC will issue a tax assessment to recover the £50,000 overpayment previously disclosed.

Example I

Company I received £300,000 of CJRS grants in the accounting period covered by its return. It was entitled to the full amount when it received the grant. The Company established after the end of the accounting period that it was not entitled to retain £50,000 of the CJRS because it did not use it for its required purpose. Company I has not voluntary disclosed the amount overclaimed to HMRC.

Company I’s CT600 return must show that it received £300,000 in box 471 and that it was entitled to £250,000 by filling in box 472 as £250,000. Box 473 is filled in as £0 because no voluntary disclosure or assessment has been made. Company I has filled in boxes 471-474 correctly to self-assess in box 526 that there is a £50,000 overpayment tax charge. HMRC will write to Company I with the reference number and payment details. This is not corporation tax so Company I should not pay this with the corporation tax liability.

Example J

Company J received £100,000 of CJRS grants in the accounting period covered by its return. After the end of the accounting period, it reviewed the amounts received and finds it was entitled to £90,000. Company J filled in box 471 with £100,000. As Company J was entitled to only £90,000 of CJRS grants claimed, they fill in box 472 with £90,000.

Before Company J files its tax return, it offsets the overpayment £10,000 against a later claim. Company J puts £10,000 into box 473.

Company J has filled in boxes 471-474 correctly to self-assess in box 526 that there is no tax charge.

Example K

Company K received £100,000 of CJRS grants in the accounting period covered by its return. On reviewing the amounts received, Company K finds it was entitled to £90,000 in the account period covered by its return.

Company K completes the CT600 and, before its files its return, discloses £10,000 overpayment to CJRS but does not make any repayment. HMRC raises an assessment for the unpaid amount.

Company K filled in box 471 with £100,000. As Company K was entitled to receive only £90,000, they fill in box 472 with £90,000. Company K should include £10,000 in box 473, as the overpayment disclosed and assessed is the same amount. Company K has filled in boxes 471-474 correctly self-assess in box 526 and they have no further tax charge.