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HM Revenue and Customs (HMRC) has urged retailers to declare and include COVID-19 grants or payments on their company tax returns if they are taxable.

The taxable grants include:

  • Test and trace or self-isolation payments in England, Scotland and Wales
  • Coronavirus Statutory Sick Pay Rebate
  • Coronavirus Business Support Grants

The deadline for filling 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.

If a company received a Coronavirus Job Retention Scheme (CJRS) grant or an Eat Out to Help Out payment, they will need to do both of the following on their CT600 tax return:

  • Include it as income when calculating their taxable profits in line with the relevant accounting standards
  • Report it separately on their Company Tax Return using the CJRS and Eat Out to Help Out boxes

The deadline to complete Self Assessments 2020/21 tax return and pay any tax owed is January 31, 2022.

Last week, HMRC announced they would waive penalties for one month for late filing of tax returns and late payments. The changes mean:

  • anyone who cannot file their return by the January 31deadline will not receive a late filing penalty if they file by February 28
  • anyone who cannot pay their tax liabilities by the January 31 deadline will not receive a late payment penalty if they pay their tax in full, or set up a time to pay arrangement, by April 1

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