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Self Employed Grant

Hi All
Probably been asked and answered before but, we got the self employed grant through lockdown but it wasnt paid into our business account how do we account for it for the self assesment (not vat regd anymore)

Create a sale call it grant payment, place it in the misc income category or grant income if there is one. mark it as paid to the proprietors drawings.

Its taxable Income so it should appear as part of the turnover. However bare in mind on your self assessment there is a seperate box for siess so do not include it in the turnover box.

thanks for making that easy! thought it was going to be horribly difficult

You shouldn’t create a sales invoice, it’s a grant.

Mark it as miscellaneous income and tag it to the proprietors account.

If it went into a personal account, for example, enter a new money in line in the proprietors account, and tag it as miscellaneous income.

When you file your tax return, it clearly states, not to include this figure in your business turnover, as it does not form part of it.

There is a special separate box when filing your return, and that will be different depending on whether you are using the full or short version of the return.

Yes the money is taxable and subject to nation insurance, if your grants and business profits combined, are over your personal yearly allowance.

Also for any VAT registered businesses, these grants do NOT go on any return, or form any part of the figures.

You are correct technically it shouldnt be a sales invoice.

It was just the easiest method of explaining how to record given op isn’t vat reg and it wasn’t paid directly to the bank account on qf.

But I agree. A journal using proprietors drawings and misc income would be better.

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