HMRC sets out penalty regime for SEISS abuse

The fourth Self-Employed Income Support Scheme (SEISS) grant is now live and HMRC has set out the penalties for abuse.

Glasgow: 0141 221 0477 | East Kilbride 01355 230161 | Hamilton: 01698 284 888 or email accountants@ngs-ca.co.uk

The fourth Self-Employed Income Support Scheme (SEISS) grant is now live and HMRC has set out the penalties for abuse.

An overclaimed SEISS grant includes any amount of grant which the self-employed were not entitled to receive or was more than the amount HMRC said the applicant was entitled to when the claim was made.

Overpayments must be notified to HMRC within 90 days of receipt of an SEISS grant.

When deciding the amount of any penalty, HMRC will take 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.

The HMRC guidance states: 'If you knew you were not entitled to your grant and did not tell us in the notification period, the law treats your failure as deliberate and concealed. This means we can charge a penalty of up to 100% on the amount of the SEISS grant that you were not entitled to receive or keep.

'If you did not know you were not entitled to your grant when you received it, we will only charge you a penalty if you have not repaid the grant by 31 January 2022.'

Applications for the fourth grant can be made here.

If you would like further advice or require a compliance review on your eligibility, please contact us.

Dedicated to delivering a first class client service

Nelson Gilmour Smith has been in business for over 100 years and today, we continue to build on our enviable reputation for providing excellent advice and first class service to our business and personal clients alike.

We have many clients in the local community and service businesses, small and large, across many sectors.

Learn more

Latest news
Contact Details

Please call:
Glasgow: 0141 221 0477
Kilbride: 01355 230161
Hamilton: 01698 284 888

View office Locations

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

© 2021 Nelson Gilmour Smith. All rights reserved. powered by totalSOLUTION

Nelson Gilmour Smith, Mercantile Chambers, 53 Bothwell Street, Glasgow, Lanarkshire G2 6TB
Kilbride Office : 33 Kittoch Street, East Kilbride G74 4JW
Hamilton Office : 47 Cadzow Street, Hamilton ML3 6ED
We use cookies on this website, you can find more information about cookies here.