Need some help with Form 11

broshka

Hi,
I am new here, I hope someone will help me out.
I run a small business online and I had very little income for the year 2010 as I just started trading in November. I am registered for ROS and I am trying to fill out the form 11 online. I have few questions regarding this. As I am on BTWEA do I have to state that in the form as other income? And the second question... I received grant from the Enterprise Board for my business, do I have to state that too? And the most important thing for me.. is this grant taxable? Thanks in advance.

dbran

Hi

If the grant is repayable to the enterprise board then it is a loan and it is not taxable. Otherwise it would be taxable as a source of income. You would presumably have expenses that you incurred in your business as a result of getting the grant which would also be deductable.

The back to work allowance (if is it as a result of being on jobseakers benefit) is not taxable.

Kind Regards


dbran

broshka

Thanks for reply.
The grant is not repayable, it was funded by EGF, so now my income for 2010 is 10 times bigger than I thought...
The good news is that BTWA is not taxable but I think I have to include it in the form as a source of income, or maybe not?
What do you mean by saying:

"You would presumably have expenses that you incurred in your business as a result of getting the grant which would also be deductable"

Are these expenses deductable from the income tax I would have to pay, so I will pay less tax then, am I right??

dbran

Thats correct.

You usually only get a grant if you have business costs to incurr so if the grant is taxable then the business costs should also be deductable.
To put it another way you would not have incurred the business costs if you had not got the grant. So there shoud be no net additional income to you overall unless there is somehow a surplus of unspent grant moneys.

Kind Regards

dbran

broshka

Yes, there were some unspent money from the grant, quite a big sum... now what amount should I put to the form? lets say the grant was 5k, the business cost was about 2k, do I pay the tax only from remaining 3k?

dbran

Yes the 3k would be income.

paul71

broshka wrote: »

Yes, there were some unspent money from the grant, quite a big sum... now what amount should I put to the form? lets say the grant was 5k, the business cost was about 2k, do I pay the tax only from remaining 3k?

Broshka, may I ask a question, since the grant exceeded the actual set-up costs by 150% is it posible the there are more business developement costs to be incurred in the future for which the grant was intended?

broshka

Hi paul71,
I think its too late for that the monies are long gone.. but here is one more question, if this grant was withdrawn from the EGF (European Globalisation Fund) as a part of a compensation for the unemployed(been made redundant workers) is it still applies to be taxable, I mean the remaining part of the grant. Is there any tax relief/exemption I could apply for in such situation?

Habhann35

HI Broshka
I have just come across your post as i am now in the same boat as you were last year.

Just wondering how you figured out how to fill out your form and what happened with the BTWEA and the EGF grant ??

Many thanks