temporary holding a/c for grant from council for covid volunteers

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oilboil replied

30 March 2020, 10:09
I would do the following

Get it paid into your bank account and then immediately move it to another location where it could be adminstered from there. (maybe your own personal account)

Make a note on these two transactions and keep the council guidance - your accountant will have no issue sorting this out at year end. If you keep it in the LTD account and settle bills from there though it becomes more of a headache to solve later on.

Once they've sent you the grant they cannot dictate how you continue to hold the money so shift it as soon as it arrives
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WordIsBond replied

29 March 2020, 14:20
Originally posted by northernladuk View Post

If the council says it's OK and you are going to do the right thing then just get on with it. I don't think you need to worry too much about the rules and regs for that amount at this point in time.

At worst you can deal with the books later.

I agree. Do what needs to be done, let your accountant figure out what you need to do to clean it up. Make sure you have a clear paper trail, especially from the council.

If HMRC ever tries to give you any trouble over it, there are about 1261 journalists running around the UK looking for a different angle on coronavirus who would love to give them a black eye.
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northernladuk replied

28 March 2020, 15:44
If the council says it's OK and you are going to do the right thing then just get on with it. I don't think you need to worry too much about the rules and regs for that amount at this point in time.

At worst you can deal with the books later.
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MPwannadecentincome started a topic temporary holding a/c for grant from council for covid volunteers

28 March 2020, 15:23
temporary holding a/c for grant from council for covid volunteers

Hi, it is the weekend so my accountant (a national chain) is closed and I need some advice for first thing Monday morning.

I am helping to run a Covid-19 Mutual Aid support group for our town to ensure that the elderly and vulnerable who are in self isolation can call for help with medicines, shopping etc.

The county council has granted us £500 to support the voluntary activities and said we should supply a business bank account for the money to be paid. Of course being a "just set up 3 days ago" group of volunteers there is no business bank account. The council said anyone's business bank account will do.

This doesn't sound right to me?

And if it is OK what do I put on the booking sheet for the transaction and subsequent withdrawals (cash or leaflet printing costs). And I should not claim back any VAT on those transactions?

Any accountants on there sorry I know it's the weekend but your considered advice on this would be welcome please?

Thanks!
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