We’ve been keeping you up to date on any SEISS developments. You should be aware that anyone who received incorrect amounts, or claimed when they shouldn’t have, will be expected to pay any amounts back. Those who do not will incur significant penalties.
We are advising our customers not to fall foul when it comes to their SEISS grant claims. As we previously explained HMRC has set up a special investigations unit to combat any fraudulence and they will be on the lookout for any erroneous claims or shortcomings.
If you have taken advantage of any of the Self-Employed Income Support Scheme Grants, you must look back over your activity carefully and keep the following considerations in mind.
Paying back the SEISS grant if you weren’t eligible.
In these circumstances, you must tell HMRC if you made a claim and you were not eligible:
If you claimed either the first or second grants but your business wasn’t adversely affected during the period.
If you claimed the third and fourth grants but you were not impacted by an inability to trade during the relevant periods OR your business was not impacted by reduced demand, activity or capacity.
You made a claim when you had no intention to continue trading.
You incorporated your business.
Along similar lines, you must notify HMRC if you ended up receiving more than they said you were entitled to.
You should also consider if you made any amendments to your tax return after 3/3/21. Any changes may impact your eligibility. Where the fourth grant is concerned, it could mean that you’re now entitled to a lower amount.
You do not need to tell HMRC if any amendments meant your grant was lowered by £100 or less although, if you have any doubt about this, it’s probably best to still tell them using the online form.
How long do I have to pay my SEISS grant back?
If you discover that you are not eligible, you must tell HMRC within 90 days of receiving the grant.
Did you amend your tax return on or after 3rd March 2021? If the amendment was made before receiving the fourth grant, you must tell HMRC within 90 days of receiving it. If you amended your tax return after you received the fourth grant then you must tell HMRC within 90 days after this amendment.
How do I pay my SEISS grant back?
HMRC say that they understand that mistakes do happen. Please keep in mind that the process for paying the grant back will differ depending on your reason for repayment.
If you're repaying due to a tax return amendment, complete the online form and HMRC will be in touch with the amount, if any, you have to pay and how you can do this.
It is worth noting that you can also pay back some or all of your grant voluntarily at any time. If you made a claim when you were not eligible or you want to make a voluntary repayment, use the online form to tell HMRC if you’re paying back some or all of the grant. They will then send bank details to pay the amount back.
Before you start either process, make sure you have:
Your grant claim reference.
Your UTR number.
The Government Gateway user ID and password that you used when you made your claim.
What happens if I do not pay my SEISS grant back when I need to?
If you do not tell them, HMRC will write to you to recover an overpaid grant and you will risk a penalty. This could be up to 100% on the amount of your SEISS grant or the amount you were not supposed to receive.
To recover any overpaid amounts, HMRC can make a tax assessment and any amounts discovered to be owed must be made within 30 days of the assessment. Interest will be charged on any late payments and late payments could incur penalties. A complete overview can be found on HMRC’s website.
We’re here to help. If you need support with paying back your SEISS grant, get in touch with us. We are a UK based accountants who work with businesses and individuals both locally in West Bridgford, Nottingham and nationwide.
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