The Government has paid out over £25.2 billion in financial support through the Self-Employed Income Support Scheme (SEISS) grant to individuals who are self-employed and whose business has been affected by coronavirus.

The most recent figures from HMRC show that 9.1 million grants were claimed by self-employed workers throughout the UK since the was scheme launched in May 2020.

The fifth and final grant applications closed on September 30, however, HMRC has issued new guidance for those who has received a payment and has warned that in some circumstances part or all of it may need to be paid back, or you may face a penalty.

What you need to know about SEISS repayments

The HMRC guidance states that you must tell them if, when you made the claim, you were not eligible for the grant. 

For example:

·       for the first or second grant, your business was not adversely affected

·       for the third, fourth or fifth grant, your business was not impacted by reduced activity, capacity or demand or inability to trade during the relevant periods

·       you did not intend to continue trading

·       you have incorporated your business

You must also tell HMRC if you:

·       received more than HMRC said you were entitled to 

·       amended any of your tax returns on or after 3 March 2021 in a way which means you’re no longer eligible or are entitled to a lower fourth or fifth grant than you received

·       made a mistake reporting your turnover in your claim for the fifth grant which means you are entitled to a lower grant than you received

·       have received a letter from HMRC that says you need to pay back some or all of a grant

You must tell HMRC if there is an amendment to any of your tax returns on or after 3 March 2021 which either:

·       lowers the amount of fourth or fifth grant you were eligible for

·       causes you to no longer be eligible for the fourth or fifth grant

If your return has been amended before claiming your grant, you must tell HMRC. 

If your return has been amended after receiving your grant, you must tell HMRC within 90 days of making the amendment.

If you do not tell HMRC, they will write to you to recover the grant and you may also have to pay a penalty.

You do not have to tell HMRC if the grant amount:

·       you are eligible for has lowered by £100 or less

·       was £100 or less

If you are concerned this may affect you and wish to discuss your situation further please get in touch