HMRC has updated their guidance which sets out the procedure for reporting and repaying overclaimed SEISS Grants (Self-Employed Income Support Scheme).
The Revenue is also reminding sole traders and partners who have received these grants, that there are potential penalties of up to 100% of the amount overclaimed under certain circumstances.
A penalty of up to 100% of the amount of the SEISS grant applies in situations where the trader knew they weren’t entitled to the grant and didn’t tell HMRC within a 90-day notification period. The law treats the failure as ‘deliberate and concealed’.
Traders are required to notify HMRC if there is an amendment to any of their tax returns on or after 3 March 2021 which either:
- Lowers the amount of the fourth or fifth grant they are eligible for; or
- Causes the trader to no longer be eligible for the fourth or fifth grant
If the tax return was amended before claiming the fourth or fifth grant, traders had to tell HMRC within 90 days of receiving the grant.
If the tax return has been amended after receiving the fourth or fifth grant, traders must tell HMRC within 90 days of the amendment.
If the tax return has been amended on or after 3 March 2021, traders do not need to tell HMRC if the grant amount is lowered by £100 or less.
For more information about receiving grants you weren’t entitled to, please head to the gov.uk website.
If you’re concerned about a grant you received or any penalties you’ve received, please get in touch with PKB and we’ll be able to help.
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