Just looking for some info on how this works,one of my clients is getting £4000 per year to take on an apprentice, I realise this will be toward training and wages however how do you treat this in the accounts do you include this in the income figure as the guy is just self employed. Thanks
Before answering this I want to categorically state what I am answering.
From the description given it seems that this is a revenue based grant which will be used in it's entirety within the given period.
Considering this the grant will be credited against the relevant expense (cost of employing the apprentice) in the same period.
Note that the rules are completely different when grants are given against assets where a liability is likely to need to be recognised.
Under UKGAAP the rules on this are encapsulated within SSAP4 Accounting for Goverment grants and under IFRS you will find the detail in IAS20 Accounting for government grants and disclosure of government assistance.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Just looking for some info on how this works,one of my clients is getting £4000 per year to take on an apprentice, I realise this will be toward training and wages
Erm, such a grant is explicitly stated to help a business towards the cost of employing an apprentice such as equipments, adjustments, insurance, and training cost if it's not already otherwise funded. A business may not use such a grant for wage subsidy.
