HMRC updates SEISS repayment guidelines
HMRC has published guidance detailing the process to take if you have incorrectly applied and received a grant through the government's self-employment income support scheme (SEISS).
If a person has been paid a grant by the UK Government, which they were not entitled to and have not repaid, they must contact HMRC within the notification period, which ends on 20 October 2020, or 90 days after you received the grant.
Once notified, HMRC may conduct an assessment for the amount given, which needs to be paid back within a 30 day period.
According to the guidance, late payment penalties may apply where payments are not made within the timeframe. Penalties may also be charged if it is revealed the grant claim was ineligible and HMRC was not made aware within the time period above.
If this was an “innocent error”, however, and the person is not aware of the claim, additional penalties may not be charged as long as the amount is paid by 31 Janury 2022.
The guidance follows the Government announcing millions of self-employed people have the opportunity to claim a second SEISS payment of £6,570.
According to the Treasury, more than 2.7 million people benefited from the first stage of SEISS, with the Government handing out £7.8 billion in grants to assist them through the pandemic.
However, an estimated 3 million self-employed workers are excluded from the government scheme.
If you have any questions about the scheme, speak to us.