Self-employment Income Support Scheme: HMRC and your claim
As the Self-employment Income Support Scheme (SEISS) comes to a close, HMRC will continue to check claims
It is always preferable to approach HMRC with a disclosure, rather than wait for HMRC to discover
As HMRC recognises, genuine mistakes in SEISS claims have been made over the last year. The rules have
changed frequently and in the very early stage of roll out, HMRC took a fairly broad brush approach to
what it meant for a business to be ‘adversely affected’.
We recommend checking back over claims now, so that you can be sure that you have evidence in place to
support your claim, and that you are confident that you have met the eligibility criteria under each
successive phase of the rules. Particularly important are differences in the rules for SEISS 1 and 2, for
which a business had to be adversely affected, and also within a particular timeframe: and SEISS 3, 4 and
5, where requirements are more precisely defined in terms of reduced activity, capacity or demand.
Reviewing your claim before your 2020/21 tax return is submitted is particularly important. SEISS amounts
will be entered on the tax return, and submission of the return constitutes your acceptance that the
figures are accurate.
In some circumstances, the whole, or part, of a SEISS grant would need to be repaid. This could be, for
example, where a claim doesn’t fit the criteria for a particular phase of SEISS; where a claimant did not
intend to continue trading; or where a business has been incorporated before a SEISS claim was made.
For SEISS 4 and 5, any amendments to the tax returns which HMRC has used to calculate your grant,
made on or after 3 March 2021, are now on the list of circumstances that need monitoring. If such an
amendment changes SEISS eligibility, resulting in less or no SEISS payment, it’s now your responsibility
to notify HMRC of this. There is a different route to notify and repay in these circumstances, and we can
advise here. Note however that if the amendment means a reduction of £100 or less, HMRC does not need
notification: the amount can be ignored.
There are time limits both for alerting HMRC to potential problems and making repayment. Most
importantly, HMRC should be notified within 90 days of receiving a grant to which you think you may not
be entitled. Once this has been done, HMRC is likely to be open to arranging time to make repayment, and
we can guide you on procedure here.
Checking claims is particularly important as HMRC has the power to charge penalties. These can apply when
someone fails to notify HMRC that they claimed a grant to which they knew they were not entitled. More
rigorous conditions attach from SEISS 4 onwards, including a responsibility to notify HMRC where
circumstances change and someone becomes ineligible after making a claim. Penalties should not apply
where someone received SEISS not knowing they weren’t eligible, if they repay the grant by 31 January
2022, or by 31 January 2023 for SEISS 4 and 5. Where penalties do apply for claiming when not
entitled, HMRC may charge a penalty of up to 100% on the SEISS grant overclaimed.
Finally, just as some major employers have voluntarily repaid furlough monies, it’s possible at any time
to repay voluntarily some or all of a SEISS grant. We can advise on how this can be done.
HMRC will be dealing with claims for SEISS 5 shortly, and we should be pleased to advise in this area,
particularly as regards the new requirement to calculate reduction in turnover.