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Unexpected tax bills on horizon from coronavirus grants

Depending on how businesses and self-employed individuals prepare their accounts, there could be unexpectedly large tax bills for those that have received small business or retail, hospitality and leisure grants during the pandemic as early as this tax year, explains RSM’s Caroline Hulse

Coronavirus grant income is taxable, and for some, this tax will be payable sooner than they think.

Government and local authorities have announced and distributed several grants recently, including the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund, to help smaller businesses adversely affected by the coronavirus crisis.

This has been a welcome boost, but as business owners start to think about their tax returns for the 2019/20 tax year, it is now time to take a closer look at the amount of tax that will be payable on these grants and when it will be due.

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