HM Revenue & Customs (HMRC) has been unable to process a “significant” number of 2020/21 Self Assessment tax returns due to Self Employment Income Support Scheme (SEISS) reporting errors, it has been warned.
The Institute of Chartered Accountants in England and Wales (ICAEW) reminded self-employed business owners that the first, second and thirds grants should be reported properly or risk potential fines for non-compliance.
According to the regulator, a large number of returns do not match HMRC’s records of claims for coronavirus income support – largely due to figures being input in the wrong box or left out entirely.
While HMRC has the power to correct returns to include grants where they have not been included to generate a new SA302 tax calculation, the calculation will be incorrect if grants have been included but input in the wrong section of the Self Assessment form.
“In this situation, the taxpayer or their agent will need to file an amendment; rejecting HMRC’s correction will not resolve the issue,” said the ICAEW.
It is advised that taxpayers should return to their claim for the SEISS to cross-check information and ensure that the Self Assessment return is completed correctly.
The deadline to file the 2020/21 Self Assessment online tax return is midnight 31 January 2022.
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