HMRC has started to recover overpayments of Self-employment Income Support Scheme (SEISS) grants.
From April, HMRC is writing to taxpayers whose entitlement to the fourth or the fifth SEISS grant has been reduced by more than £100 to ask them to repay amounts that were overpaid.
Entitlement to the fourth and fifth SEISS grants can be affected by an amendment to a tax return. HMRC’s letters include an assessment and a date by which you must make the repayment. If the payment is over 30 days late, a late payment penalty of 5% of the unpaid tax will be applied.
Even if you do not receive a letter, you must tell HMRC within 90 days if an amendment to a tax return affects your entitlement.
Anyone who needs to repay grants can use HMRC online tools to help them calculate what they owe. Individuals who receive a letter from HMRC are required to use the payment reference beginning with X when making their repayment.
If you cannot pay in full, you may be able to set up a Time to Pay arrangement with HMRC.
If you receive such a letter, please get in touch. I would encourage all taxpayers to complete their 2022 tax returns over the coming two months ahead of the payment on account due on 31 July 2022.
If you would like any advice about your tax return, please contact us by calling 0115 928 3228 or emailing info@coalesco.co.uk.
