Within the profit and loss account or Income and Expenditure Account the grant income should be presented either separately or under a general heading such as other operating income but should not be turnover. Under company law the grant income cannot be netted against the costs that they might relate to. 

During the current Pandemic (Covid19),  The government and local authorities have paid several grants including the Job Retention Scheme (JRS), the small business grant fund (SBGF) and the retail, hospitality and leisure grant fund (RHLG).

Dealing with grants in quick books online

1. In quick books online, head over to chart of accounts and set up a brand new Account type like the one below. 

2. This is how you process the actual grant receipt from   HMRC