Access to work

My clients traded in partnership until 31 December 2013 when they incorporated. The former partners then became directors and shareholders in the new company.

One former partner became blind two years ago. He applied successfully to the Department for Work and Pensions/Jobcentre for an access to work grant and in the accounting year ended 31 March 2013 £22 000 was paid into the partnership.

The award was used to engage an employee to provide support through the day. In addition the employee has other responsibilities within the business.

I have been struggling with the accounting and tax implications of this award. I can find nothing to give me a steer. The Jobcentre merely directs me to HMRC.

I have concluded that neither the award nor the expense is a tax item and that the correct procedure would be to net off the award against employment expenses if...