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HMRC UPDATES SELF EMPLOYMENT GRANT REPAYMENT RULES

HMRC has just published guidance detailing the process to take if you have incorrectly applied for and received a SEISS grant (Self Employed Income Support Scheme). If a person has been paid a grant by the Government, which they were not entitled to, they must contact HMRC within the notification period, which ends on 20 October 2020, or 90 days after you received the grant.

Nantwich accountants, Afford Bond said: "Once notified, HMRC will conduct an assessment for the amount given, which needs to be paid back within a 30 day period. 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."

Additional penalties won't be charged though, If this was an “innocent error”, as long as the amount is paid back by 31 Janury 2022.

The guidance follows the Government announcing that millions of self-employed people have the opportunity (if they are eligible) to claim a second SEISS payment of up to £6,570, and 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.

If you need professional accounting advice on SEISS, please us the Contact Us form here on our website at www.affordbond.co.uk  

Please note: we are also currently assisting several companies with Capital Allowances issues. If you think you need specialist help with Capital Allowances to assist with tax relief in your business, please let us know and we can help.