Is my Grant Capital or Revenue? 1

Businessman With Gold Bar

A grant is an amount of money given to an individual or business for a specific project or purpose.

You can apply for a grant from the government, the European Union, local councils and charities.

Advantages include:

  • you won’t have to pay a grant back or pay interest on it
  • you won’t lose any control over your business

Financial assistance in the form of grants is subject to the normal taxation rules, as supplemented by S105 Income Tax (Trading and Other Income) Act 2005 and S102 Corporation Tax Act 2009 (see BIM40465). Under normal rules the tax treatment of grants will depend on whether they are capital or revenue.

Revenue grants

Grants which meet revenue expenditure, such as interest payable, are normally trading receipts.

See also Smart v Lincolnshire Sugar Co. Ltd [1937] 20TC643 and Burman v Thorn Domestic Appliances (Electrical) Ltd [1981] 55TC493.

Capital grants

Grants which meet capital expenditure are normally not trading receipts.

Grants that may be capital in nature include those paid to acquire capital assets or to facilitate the cessation of a trade or part of a trade.

See The Seaham Harbour Dock Co. v Crook [1931] 16TC333).

A capital grant reduces any qualifying capital expenditure for capital allowance purposes, see CA14100.

See BIM40451 for more details

The Accounting Rules are set out in section 24 of FRS102, neatly explained by Steve Collings in his blog, click here to read it

steve@bicknells.net

Growth Vouchers – closing soon! Reply

Cash

Apply before 31st March to get up to £2,000 from the Government for professional business advice

• Growth Vouchers are a grant from the Government to help businesses like yours get business advice from accredited advisers.

• The voucher match-funds your investment in professional advice for your business so you could get a grant of up to £2,000 towards the cost of the advice.

You can use the voucher to get advice on:

• Finance – and how to manage your cash flow better
• Recruiting staff – how to develop their skills
• Improving management and leadership skills
• Marketing – attracting and keeping customers
• Technology – and how your business can make the most of it.

https://smallbusinessgrowthvouchers.service.gov.uk/eligibility-check/?em2

steve@bicknells.net

Grow Online, Expand Worldwide – initiative to help SME’s 1

e commerce

The government wants to make the UK the best place to start and grow a business. In the autumn it will launch a public campaign to celebrate GREAT British business success stories. The government wants to inspire other small businesses and point them towards the support that can help them grow. It will also launch a new strategy for how the whole of government will back them. This will set out a range of measures to continue helping budding entrepreneurs and existing businesses succeed.

If you are a business interested in the ‘Grow Online, Expand Worldwide’ campaign, please call 02070344848 and speak to a member of the Click:Connect:Sell team.

Just 33% of small to medium-sized companies have a digital presence and only 14% sell their products online. But research suggests that if UK SMEs fully adopted online technologies, they could increase annual turnover by £18.8 billion. Here in the UK we’re twice as likely as the OECD average to buy goods online.

UKTI’s ‘Grow Online, Expand Worldwide’ campaign includes local support for:

  • 4,000 aspiring web exporters through awareness raising sessions, a webinar campaign and international web workshops.
  • 1,200 web export ready businesses through e-commerce masterclasses.
  • 1,500 web exporters with bespoke one-to-one advice from experts, tailored website reviews and action planning to access web exporter vouchers – up to £3,000 matched funding.
  • 600 companies from the UK retail sector to sell online by helping them to list their products on the world’s leading online sales sites including Alibaba in China and Tejuri in the Gulf.

steve@bicknells.net

Knowledge Transfer Partnerships – KTP Reply

I attended a excellent presentation today from Bournemouth University and Dorset Cereals on KTPs, under the scheme a Gradute is recruited jointly by the company and the University and placed at the company for up to 36 months. You also get University support of half a day a week.

The Graduate is engaged to work on strategic projects within the business and the business contributes a 33% to 50% towards the cost, the rest is grant funded.

It sounds like an excellent scheme as you not only get a graduate but also get help from the University too.

Find out more at http://www.bournemouth.ac.uk/businessfunding

steve@bicknells.net

Training Grant of upto £1000 Reply

Matched funding is now available from Skill South East for Leadership and Management Training, the maximum funding is £1000 Grant when you spend £2000 on Training.

Provided you have at least 2 employees and can show that your business has the potential for fast growth you should qualify.

Bicknell Business Advisers are approved providers but we also have access to bartercard trainers who can provide training too.

If you want to know more drop me an e mail steve@bicknells.net