HMRC SEISS compliance activity update
29 April 2022
Her Majesty’s Revenue and Customs (HMRC) has confirmed there will be a new strand of compliance activity relating to self-employment income support scheme (SEISS) grants.
Where a customer’s tax return for any of the years from 2016/17 to 2019/20 is amended on or after 3 March 2021, meaning they’re no longer entitled to the amount they originally claimed for their fourth or fifth (or both) SEISS grants, they need to repay any overpayment to HMRC.
Where there has been an overpayment on the fifth SEISS grant, HMRC will also compare the reference year (2018/19 or 2019/20) turnover figure they entered when claiming the grant to the turnover figure included on their latest tax return. Where there are discrepancies which mean the individual received an 80% grant when they were only entitled to a 30% grant, they’ll need to repay the difference.
HMRC is in the process of contacting some of those whose entitlement to the grants has reduced by more than £100, to ask them to repay the overpaid amount. Circulation of assessments and explanatory letters began on 22 April 2022.
HMRC has also advised that, although it won’t be raising assessments to recover overpaid grants of £100 or less, the voluntary repayment service can be used for individuals wishing to repay these amounts. Information is available online.
Anyone who is struggling financially can contact HMRC to discuss a payment plan by calling the Self-Assessment helpline on 0300 200 3822.
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