As the 2021 Tax Return gears up, HM Revenue & Customs has confirmed that it will issue harsh penalties to tax payers who have incorrectly claimed SEISS, and subsequently not taken advantage of opportunities to voluntarily repay the excess amounts.

The rules state that overpayments must be notified to HMRC within 90 days of receipt of an SEISS grant, but the 2021 tax returns provide an opportunity to declare any such amounts which effectively gives people up to 31 January 2022 to come clean.

In HMRC’s opinion they will potentially be able to charge penalties of up to 100% of the overclaimed amount. This is because they are providing a notification period during which people can arrange to repay the amounts; if taxpayers don’t take advantage of this then HMRC will think they are acting in a way that is “deliberate and concealed.”

If you have concerns about any claims made or funds received, we would recommend that you contact us or your advisor  immediately so that the situation can be reviewed and, if necessary, corrected via you tax return for the year ended 5 April 2021.

This could relate to CJRS and other Covid-19 payments as well as SEISS. Companies may also be in a similar position.

Please contact us for more information and advice.