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posted on October 5, 2020
HMRC announced in July how they were going to penalise taxpayers who misused the SEISS grant. They are asking people to take a close look at the claim they made and review whether the claim was either appropriate or excessive and whether any SEISS penalties are due.
Should you have received a grant to which they were not entitled, HMRC needs to be notified by the later of:
Payment of the outstanding balance of any amounts overclaimed has to be made by 31 January 2022. Recovery of the amount overpaid may be either by assessment, voluntary repayment or on your 2020/21 income tax return.
The HMRC guidance on SEISS penalties suggests that claimants who knew they were not entitled to the grant, might automatically being treated as having deliberately and concealed the failure, giving a starting penalty of 100% of the grant paid out. Nevertheless, there does look to be an escape route from the potential SEISS penalties in the second condition quoted from the guidance as below.
If you do think you have overclaimed then it is very important that you any claims and payback anything overclaimed within the time limits. Prompt action is important if you are to avoid SEISS Penalties.