A charity has a trading subsidiary which is a hotel (not a charity). Normally the combined gross income is just over £1m so the accounts are audited and the charity parent company prepares group accounts.
As the hotel is closed due to Covid 19 its turnover will be much less this financial year. However the trading subsidiary hotel is able to claim for the cost of furloughed employees under the CJRS.
In the accounts of the trading subsidiary would the income from the CJRS be netted of the wages & salaries cost and would this grant income needed to be included in the calculation of gross income for the group to determine whether or not gross income exceeds £1m for charity audit purposes?