How do I account for self employed grant from HMRC?

Hi @stevebye,

I'll provide the steps on how you can record an HMRC-provided grant. I believe what you're referring to is the Coronavirus Job Retention Scheme.

Follow the steps below on you can record it within QuickBooks Online:

1. Go to the Employees tab. 
2. Under the Payroll tab, click Let's go.
3. Tap the Edit link next to one employee.
4. Select Add/edit a Bonus or Other Payment.
5. Click the Plus icon at the top of the box and select Other Earnings as the type.
6. Name the item something along the lines of Furloughed Employee Pay.
7. Enter the employee’s payment amount for the period.
8. Edit all other Furloughed employees on the pay run, and add in the payment category you have created.
9. Save and View draft, and then submit your payroll to HMRC as normal.

Additional details on this can be found in this article: COVID-19: Coronavirus Job Retention Scheme. A lot of related resources can be found at the bottom of the page that pertains to this topic. 

Place a comment below if you have other questions. I'll be sure to get back to you. 

Is this the same process for accounting for the HMRC Self Employed SEISS grant which is not the same as the furlough scheme.  I received a single payment in May and there will be another payment in August both of which are taxable.

Hello there, hjd,

Yes, the process is the same if you're using QuickBooks Online to account the SEISS grant.

If you're using QuickBooks Self-Employed (QBSE), I recommend consulting your accountant for specific instructions. He/She can help you categorize the tax for accurate calculation.

Check out these handy articles for more details about categorising transaction in QBSE:

• Categorise and edit transactions in QuickBooks Self-Employed

• Create rules to speed up reviews in QuickBooks Self-Employed

Stay in touch if there's anything else you need. I'm always right here to help.