How do i enter grants from hmrc for furlough payments

Hello dee35,

Recording grants from HMRC depends on whether you take it as an equity or income. You can ask your accountant about this to determine which would fit for your business setup.

First, we'll need to set up an equity or income account to track the furlough payments:

Equity account

1. Click the Gear icon and select Chart of Accounts.
2. Click the New button and select Equity in the Account Type field.
3. Select Paid-in capital or surplus in the Detail Type and enter the Name.
4. You can leave the Balance blank and click Save and Close.

Income account 

1. Click the Gear icon and select Chart of Accounts.
2. Click the New button and select Income in the Account Type field.
3. Select Discounts/Refunds Given in the Detail Type field and enter the Name.
4. Click Save and Close.

Next, we'll create a bank deposit when receiving the grants:

1. Click the + New button and select Bank deposit.
2. Select the bank account in the Account field when receiving the grants.
3. Enter the Date and go to the Add funds to this deposit section.
4. In the ACCOUNT column, select the equity or income account you've created.
5. Enter the AMOUNT you received and click Save and close.

Then again, it'd be best to reach out to your accountant about this.

Let me know if you need anything else. Have a great day!