Harsher Penalties For Misclaiming the Fourth SEISS Grant?

Now that applications for the fourth Self-Employment Income Support Scheme (SEISS) grants are being accepted via the Government Gateway, HMRC has confirmed harsher penalties for abuse of the scheme ...

An overclaim of SEISS occurs when a grant of any size is awarded, yet the individual was not entitled to receive it or got was more than the amount HMRC said the applicant was entitled to. An overpayment must be notified to HMRC within 90-days.

HMRC are entitled to charge a penalty of up to 100% of the total amount of the SEISS grant that has been overpaid, though as long as overpayments are settled by 31st of January 2022, fines will not be enforced!

HMRC takes into account whether a taxpayer knew they were not entitled to the SEISS grant when deciding upon penalties, as well as if the individual's circumstances have changed because of the pandemic. Their own guide says, "If you knew you were not entitled to your grant and did not tell us, the law treats your failure as deliberate and concealed".

"Which means you'll be in trouble with the taxman!"

As always, let me remind you there are many scams circulating, purporting to be from HMRC, offering to assist you with making an SEISS claim. Only log into the Government Gateway to apply and do not click any links in emails or text messages unless you are absolutely certain they are from HMRC.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.