SEISS grants overpayments chased by HMRC

SEISS grants overpayments chased by HMRC

HMRC is now contacting taxpayers who received more SEISS grants than they were entitled to.

Taxpayers may repay a partial amount, or repay their grants in full, with the option to appeal within 30 days.

HMRC is examining the SEISS claims and comparing them to amended returns. Indeed including the 2020/21 returns, which cover the fourth and fifth grants.

SEISS grants

Grant checks

The final two SEISS grants went off taxpayers’ reported profits during the 2016/17 to 2019/20 tax years. In the event of tax return amends, either by the taxpayer or HMRC, the fourth and fifth grants may need adjusting.
Checks are underway to see whether any amends affect the fifth grant. Taxpayers received the fifth grant at two levels, 30% or 80% of average profits.
Any amends made after 2 March 2021, that could reduce the grant downwards by £100 or more need reporting to HMRC. Taxpayers must also report if they are no longer eligible. The overpayment will need to be repaid within 30 days.
Taxpayers do not need to take action if the grant gets reduced by less than £100.
SEISS grants

HMRC contacts taxpayers

Letters are being sent to taxpayers which include a detailed assessment of the amount due. The letter will also include how HMRC calculates the amount due.

Where a taxpayer chooses not to accept the assessment, they will need to contact HMRC in writing. They have 30 days from the date on the letter to contact HMRC.

A HMRC spokesperson said: ‘We are asking customers to repay SEISS overpayments following amendments they’ve made to their latest tax return.’ HMRC aims to ensure taxpayers get their entitled grant.

A time to pay arrangement may be an option for taxpayers who cannot repay the money owed. In this instance, the taxpayer should contact HMRC.

If the payment is not made or a time to pay arrangement has not been set up, a 5% late payment penalty will apply. Interest will also apply from 31 January 2023 on any unpaid amounts.

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This guide is an informative piece and does not constitute tax advice for individual matters.