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Ask Your Own Question, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4673
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi, a (VAT registered) Limited Company has received Grants

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Hi, a (VAT registered) Limited Company has received Grants towards the cost of training expenses for the Director to attend training courses. The Grants have been posted to Income and included in Turnover in their books- is this correct or should they be offset against Training costs? The net effect is the same - so does it matter? CAS

Hello and welcome to the site. Thank you for your question.

Grants are not turnover.
I would show it as other operating income as it is non-core activity of the business.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond. and other UK Tax Specialists are ready to help you
Customer: replied 3 years ago.

Thanks for your help. I am assuming it is taxable as the net effect is to reduce a tax deductible expense ? CAS

Rona, thank you for accepting my answer.
Your reward of bonus is greatly appreciated.
The grant would be taxable.

If you need any help in future, you can contact me here and ask for me.

Good luck.

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