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How to treat Covid 19 loans and grants for Gabriel reporting

A number of customers have asked for advice on how best to treat Covid 19 loans and grants as far as Gabriel reporting and accounting treatment are concerned.

When users ask us for guidance we always preface our response with the following

  1. UK Money laundering regulations prohibit us from giving accounting advice
  2. We are neither compliance nor financial advisers – our role is to assist with the use of the software

We always do our best to guide users but we defer to their accountant or compliance advisers. However, with the above being said, we can offer the following thoughts on how these new forms of income should be treated.


Covid loans show the value received in the bank and a corresponding matching value as a long term loan, with no impact on Section B of the Gabriel return.

The amount in the bank will go down as you spend it, with any corresponding accounting for the spent amount

The business interruption loan is like any other business loan:

  • It will increase long term liabilities – no repayments in the short term
  • It will increase the bank balance
  • It has no effect on the business capital resources until the money starts being spent

Record in MyGabriel or third party accounting software using Expenses/Record Expense – use a Balance Sheet Long Term Liability heading.


A COVID Grant that does not have to be repaid should be recorded as non regulated income and have an immediate effect on capital resources.The non regulated income relates to Covid grants where no monies are repayable – so is not relevant to a Covid loan

in the case of a grant its show in no regulated income and the bank with no balance sheet liability as its not repayable

It should also be remembered that the grants are taxable.

Record in MyGabriel or third party accounting software using Income/Record Income – use a Non Regulated Income heading.

If you need further clarification please contact support by emailing support@mygabriel.co.uk

Click here to go to the Government website regarding bounce back loans.

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