Have you incorrectly claimed for the Self-Employment Income Support Scheme?

Updated: Jan 20

If so, you have 90 days to inform HMRC that you over-claimed the SEISS grants and repay any excess before penalties apply.

The SEISS grant is calculated by HMRC, so a valid claim can only be marginally overpaid if HMRC has made an error.

Applications for the second SEISS grant opened on 17 August 2020

The HMRC guidance says it will work out if you are eligible for a SEISS grant and contact you to invite you to apply. However, HMRC can’t check the three current-period conditions for the SEISS grant:

  • Whether the trade has been adversely affected by the coronavirus pandemic

  • If you traded in 2019/20 (if the tax return for that year hasn’t been submitted)

  • Whether you intend to continue to trade in 2020/21

If any of those conditions are not met, the SEISS grant has been incorrectly claimed, you need to tell HMRC as soon as possible and repay the overpaid amount.

Your accountant cannot inform HMRC about the over-claimed grant on your behalf, as the disclosure must be made using the same government gateway user ID and password that was used to claim the original SEISS grant.

If you do not repay HMRC the over-claimed amount, they will raise an assessment of tax equalling the over-claim.

If you do not tell HMRC of the over-claimed payment within the 90 days, HMRC will impose a penalty under the failure to notify rules. The penalty is calculated at 30% - 100% of the over-claimed amount for an unprompted disclosure, but will be set at 50% - 100% of the over-claimed amount for a prompted disclosure.

If you are investigated by HMRC and are found to have incorrectly claimed a SEISS grant you will be required to repay 150% to 200% of those funds.

If you are unsure of your responsibilities with this, please contact us so that we can advise you further.