Small Business Grant

Accounting
1

Hi

My Business was in receipt of a Government Grant of £10000 due to Covid-19 trading restrictions based upon the rateable value of the business premises (under £15000). The Grant was received on the 8th April 2020. The accounting period(2019/20) ended 1st of May 2020. If I post the Grant under the 2019/20 period as income it artificially boosts profits and liability for Corporation Tax. As the Grant is given to tide business over in the period while trading is disrupted, would it not be more sensible (and tax efficient for me) to account for the Grant by spreading it pro rata over the period that the Business has been unable to trade. The business is still closed but assuming it opens at the end of July (God willing!) ,could I apportion the £10000 as 25%(£2500) as income to the 2019/20 accounts and 75% (£7500) as income to 2020/21 accounts?
Thanks for any input/advice.

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2

It may be more sensible and tax efficient. But sadly you can not pro rata it. By the way the grant is defined it is treated as income not capital and therefore it must go in as the full amount on the date it is received.

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