HMRC are reviewing the SEISS payments made during the pandemic to self employed business owners via the Self-Employment Income Support Scheme (SEISS) grants. We explain how this will work and are here to help if you think you may need to repay some of the grant…
Who Are HMRC Contacting and How?
From April 2022, HMRC have been writing to taxpayers whose entitlement to the fourth and/or fifth SEISS payments has gone down by more than £100, asking them to repay the overpaid amount. The communication will make it clear how this has been worked out and the steps needed to rectify the issue.
If an amendment has been made to your tax returns for years 2016/2017 – 2019/2020, that means you would not have been entitled to the amounts claimed for the 4th & 5th SEISS grant, you will be asked to make a repayment.
If the figures have changed for the amount claimed in the 5th grant, and you are now eligible for the lower (30%) grant, but claimed the higher (80%) grant, HMRC will also ask you to repay the difference.
How Can I Pay Back My Overpaid Grant?
The communication you receive from HMRC will explain how much you owe and how to repay this. Alternatively you can find information via your online Self Assessment account.
More details and instructions can be found at Pay taxes, penalties or enquiry settlements – GOV.UK (www.gov.uk).
What If I Can’t Pay Right Now?
Although you will need to pay the money back, HMRC do understand when people are in financial difficulty – as long as you don’t ignore them, they’re happy to help!
If you are struggling to repay the amount, you may be able to set up a Time to Pay arrangement – spreading payments across a longer period of time – by contacting HMRC on 0300 322 9497. You will need to have details of your income and what they normally spend so HMRC can ensure any payment plan is affordable for you. If you need help getting this information together please contact us so that we can help you to navigate the call with HMRC.
Can I Appeal The Overpayment?
HMRC calculated the SEISS payments based on information from your amended tax return. If you disagree with the figures provided, then you may be able to appeal. However, to do this you will need to write to HMRC within 30 days of the date of the letter, telling HMRC why you think their decision was wrong. We can help you with this so please do contact us as soon as you receive correspondence from HMRC.
Will I Get a Penalty If I Can’t Pay?
The letter that you receive will include a date that the repayment must be made by, a late payment penalty of 5% of the unpaid tax will be applied if the payment is over 30 days late. A further late payment penalty will be charged if any amount remains unpaid 6 months and then 12 months after the due date.
If you set up a Time To Pay Arrangment with HMRC, the late payment penalties will not apply.
You will have to pay late payment interest on any amounts still unpaid after 31 January 2023. After that date, HMRC will charge interest on a daily basis.
Can You Work On My Behalf?
Yes, as long as you have given us the relevant authority to act on your behalf with HMRC we can act for you. We are experienced in dealing with the relevant tax offices and will be able to discuss your appeal with them for you.
If you need help navigating the SEISS Repayments, or you think you may have to repay and want to be prepared, Contact us to arrange a time to chat.
For more information on repaying a SEISS grant visit www.gov.uk/hmrc/repay-seiss.