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HMRC: 90-Days To Notify Of Overclaimed COVID-19 Grants

Have you received grants you weren't entitled to?

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Posted by Roger Eddowes on 10/08/2020 @ 8:00AM

Businesses that claimed the CJRS or SEISS grant schemes are urged to doublecheck entitlements as the 90-day period to notify HMRC of overclaims is now law ...

HMRC has published guidance on what it considers an overclaim for COVID-19 grants!

HMRC has published guidance on what it considers an overclaim for COVID-19 grants!

copyright: chrisdorney / 123rf

Under the Finance Act 2020, it has been confirmed that the following schemes are taxable and provides HMRC powers to recover overpayments:

  • Coronavirus Job Retention Scheme (CJRS)

  • Self-Employment Income Support Scheme (SEISS)

  • Coronavirus Statutory Sick Pay Rebate Scheme

  • Coronavirus Business Support Grants

HMRC has published repayment guidance as well as factsheets about penalty rules for CJRS and SEISS. The law is very clear that taxpayers must notify HMRC if they have overclaimed CJRS or SEISS, and this has to be done within 90-days of the Royal Assent of the Finance Act 2020, (the 20th October 2020) or from the date of receipt of the grant, whichever is the latest.

Penalties are based on the usual 'failure to notify' penalties, but there are additional provisions meaning that if a taxpayer knew they were not entitled at the time they received it, any overpayment must be notified or repayed in full by the end of the 90-day period. Any failure to notify will be treated as deliberate and concealed and the penalty could be as much as the grant that was originally received.

"I strongly recommend that you check you were entitled
to received the amount you did!"

Where SEISS is concerned, if you weren't adversely affected by Coronavirus, did not continue self-employment in 2019/20 because your business was incorporated, or there was no intention to trade in 2020/21 then you have overclaimed.

And for CJRS, if the grants were not used for the purpose they were indended, there were calculation errors, or employees who were supposed to be furloughed continued to work, an overclaim has been made and repayments will need to be made.

Until next time ...

Business Godparent


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About Roger Eddowes ...


Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.