06 Jul Accounting for Business interruption insurance
Recently the high court of England concluded a case in favour of the policy holders. As a result, of the ruling, nearly 370,000 businesses may be able to receive a Covid-19 Business interruption insurance pay out.
The accounting and taxation of the business interruption insurance claim isn’t simple.
Generally, if the premium was tax deductible, any insurance receipts are too taxable. However, claims must be reviewed with full documentation to find out the applicable course of accounting. The treatment can either be as a ‘Reimbursement’ or ‘Gain’.
For any practical support and advice, please contact us for further assistance.
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