Claimants who receive an overpayment of an SEISS grant could face a penalty of up to 100 per cent of the SEISS grant overpaid.
When calculating fines, HMRC has said it will take into account whether the taxpayer knew they were entitled to the SEISS grant when they received it, and when it became repayable or chargeable to tax because the individual’s circumstances changed.
This is why it is important to state your circumstances with professional help when responding to an HMRC enquiry.
Claimants who receive an overpayment must notify HMRC within 90 days of receipt.
Although overpayments must be reported to HMRC within a short period, individuals are being offered a longer window for repayment, as no fines will be enforced as long as overpayments are settled by the end of January 2022.
If you think you may have overclaimed or are notified of an overpayment by HMRC – Act Now!
If you’ve overclaimed a grant and have not repaid it, you must notify HMRC by the latest of (one of the following):
90 days after the date you received the grant you were not entitled to
90 days after the date you received the grant that you were no longer entitled to keep because your circumstances changed.
To recover the full amount of an overclaimed grant, HMRC can make a tax assessment to calculate the amount that you were not entitled to and have not repaid.
The assessment includes:
any amounts you’ve not used to pay furloughed employees’ wages
related costs within a reasonable period
You must pay any amount HMRC assesses within 30 days of the assessment or they will charge interest on any late payments.
They may also charge late payment penalties if you’ve still not paid the amount 31 days after the due date.
If you fail to do this you could be penalised, including being publicly named if you are found to have deliberately defaulted.
How we can help
Any investigation, enquiry or penalty issued by HMRC can be a stressful experience, especially if you are unaware of any wrongdoing.
We can help review your claims for the SEISS grant and determine whether the figures provided by HMRC are accurate so that you only repay what is due and can challenge any incorrect determinations.
The cost of dealing with and settling a tax enquiry can be costly, which is why we offer a tax enquiry fee protection service.
Subscribers to this service can receive financial support to cover the cost of our services during a HMRC enquiry.
If you require help with an SEISS overpayment, HMRC penalty or investigation, please speak to our experienced team today.
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