Knowledge Centre Category: Grants

Home » Grants

Is Income a Grant (no VAT) or Supply (VAT)?

Download our checklist to establish whether income is for a service (subject to VAT) or a grant (usually outside the scope of VAT).

Newsletter 31 October 2025 – Focus On Grants

This month’s newsletter focuses on the financial treatment of grants in the UK. Whether you're a business or charity, understanding how grants affect your accounting, corporation tax, and VAT obligations is essential. Green Accountancy offers clear guidance to help you stay compliant and make the most of your funding.

Corporation Tax on Grants in the UK

Grants can be a great way to fund your projects and activities, but it’s important to understand how they impact your corporation tax.

Accounting for Grants in the UK

Understanding how to account for grants can be tricky, but we’re here to help make it easier for you.

VAT on Grant Income and Related Expenditure

Understanding the VAT implications of grant income and related expenditure is crucial for any VAT-registered business.

Accounting and Tax Treatment of Re-granting Funds

Organisations distributing grants must determine if they act as a principal or an agent, as this affects accounting and tax treatment. Principals record income and expenditure; agents only show funds as liabilities on the balance sheet.