Hi, im due to be in reciept of a small business grant (minimum business rates) due to the coronavirus situation, and im just wondering if anyone may know how to log this on quickfile, would i be correct in thinking these instructions:
are the correct way to go about this? im also a little confused in if its a capital grant or a revenue grant, would this be capital i.e the above link would be correct for this,
my only confusion is if its logged as on a sales invoice as per step 4 does this mean the grant in itself is taxable,
The advice from one of the accountants on here the last couple of times this question has been asked over the last few days was to treat it as trading income but out of scope for VAT (i.e. tag it to a nominal code in the sales range but via “something not on the list” rather than making a sales invoice for it).
As far as I know that should be it - the grant will show in the turnover section of your P&L and will be part of your income tax/corporation tax taxable income but not liable to VAT. But I’m not an accountant, I’m just relaying what @Paul_Courtier (who is an accountant) said on previous threads.
Do you know what code I should use and also what I should put it under? EG,
When I create something on the charts of accounts, it asks for what it is,
asset or liability
capital and reserves