Have you over-claimed for the Self Employed Income Support Scheme, or the Coronavirus Job Retention Scheme?
You might not even realised you have… but time is ticking to inform HMRC – or else penalties will apply.
Have You ‘Over-Claimed’?
When we think of businesses who might have ‘over-claimed’ on these schemes, we think of those who have tried to use it as a quick cash grab.
However, businesses can also over-claim by simply getting the figures wrong in the first place. This is why we encourage business owners to check their claims immediately!
HMRC have been clear that they will investigate anyone who has applied to these schemes, and make sure that they punish anyone who has misused them, whether intentionally or not.
How To Repay A CJRS Grant?
Over-claimed Coronavirus Job Retention Scheme (CJRS) grant claims can be corrected in a later CJRS claim.
However, if you have already submitted the final CJRS claim, then you can repay online to HMRC here instead.
Here’s some reasons why you might need to repay:
The funds applied for were…
- not used within a reasonable period to pay furloughed wages.
- unused within a reasonable period to pay employers class 1 NIC.
- not used within a reasonable period to contribute to a workplace pension.
Under-claimed CJRS grant payments need to be set-up directly with HMRC, rather than just adjusting the amount claimed on your end.
How To Repay A SEISS Grant?
The Self Employed Income Support Scheme (SEISS) was initiated after the furlough grant scheme, therefore it’s still well in place.
Applications for the second SEISS grant scheme will open on 17th August, with new and old applicants welcomed.
As this grant is calculated by HMRC, it should be correct. However, it might be overpaid slightly if an error has been made on their end.
These are the rules to correctly claim an SEISS:
- The trade has been adversely affected by the coronavirus pandemic.
- The individual traded in 2019/20 (if the tax year hasn’t been submitted).
- The trader intends to continue trading in 2020/21
If you have claimed, and don’t meet these conditions – then your claim will have been incorrect, and you’ll need to notify HMRC as soon as possible at this link.
Huge Penalties Are In Place
HMRC aren’t messing about with these schemes. Some of the penalties are eye-watering.
The taxpayer will need to notify HMRC by the 90th day after a claim was submitted, or for claims made before 22 July 2020, by 20th October 2020.
If you miss the deadline, and do not notify HMRC, then there will be a penalty – likely a percentage of the amount you have over-claimed.
If a business stays silent and HMRC investigates; finding out that a business has incorrectly claimed either of these grants – the business will be required to repay 150% – 200% of those grants.
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