HM Revenue and Customs (HMRC) has issued a reminder to businesses that Covid-19 support grants or payments are taxable and should be declared on their company tax returns.

The deadline for customers or agents filing company tax returns (CT600) is 12 months after the end of the accounting period it covers.

The deadline to pay corporation tax will depend on any taxable profits and when the end of the accounting period occurs.

Advertisement

HMRC said that if companies received taxable Covid-19 support grants or payments they should make sure it is recorded as income when calculating taxable profits.

Taxable grants include test and trace or self-isolation payments in England, Scotland and Wales, Coronavirus Statutory Sick Pay Rebate and Coronavirus Business Support Grants.

If a company received a Coronavirus Job Retention Scheme (CJRS) grant, they will need to include it as income when calculating their taxable profits in line with the relevant accounting standards and report it separately on their Company Tax Return using the CJRS box.

Myrtle Lloyd, director general for customer service at HMRC, 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, just search ‘file my company tax return’.”