Have you received an SEISS or CJRS overpayment?

Act now before you are subject to an HM Revenue & Customs (HMRC) enquiry and penalty.

Millions of self-employed workers have benefited from the Self-Employment Income Support Scheme (SEISS) during the last year, with billions of pounds paid out to those in difficulty due to the pandemic.

Likewise, many employers have relied on the Coronavirus Job Retention Scheme, more commonly referred to as furlough, to retain their employees.

However, HMRC is now taking action against those who have received an overpayment from these grants under a tough penalty regime – as it attempts to recover funding from those perceived to have abused the financial support on offer.

How much could I get fined for an SEISS overpayment?

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.

How quickly do I need to act to report an SEISS overpayment?

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!

What happens if I think I have received a furlough overpayment?

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.

Less paperwork, more practising

Our cost-effective technology solutions are made with you and your time in mind. By cutting down on paperwork, reducing admin and streamlining accounting, we’re committed to giving business owners back more hours in the day. Talk to our digital advisors about our cloud solutions today.