Re-Start Grant Taxation and Posting on F11

There are a number of COVID-19 reliefs that will have to be accounted for in tax returns for 2020+2021. Restart Grant / TWSS / EWSS / CRSS / Bórd Fáilte grants / SBASC etc. There seems to be little enough guidance on treatment of these so far. However where the grant is to defray expenses which are revenue in nature e.g. insurance, rates etc. then they will come into the P&L and onto the trader's taxable profit. If the grant is applied to capital items e.g. to cover plant/equipment/machinery then the grant would usually be netted against the capital cost and any remaining cost after the grant would be eligible for capital allowances.

Revenue interestingly consider the restart grant to be capital in nature ( see last paragraph of P7 here , this is a document on the EWSS but it shows their approach ). But it's very likely most people used the restart grant as cashflow to cover costs like electricity, insurance etc. so it would go to the P&L as income.

It gets messy deducting from expenses as ROS doesn't permit some negative entries which could happen if say grant were 4K but rates only 2K , so you end up with a -2K expense, although there is the box you mentioned.

For the accounts schedule in the F11 so far I have put such items where they are revenue in nature in as "other income" or "income from government sources" and explained it in the additional info box at the end of the accounts schedule. The adjusted profit for tax entry then includes that income.