HMRC are writing to taxpayers who received one of the first three grants under the COVID-19 Self Employment Income Support (SEISS) scheme and have not filed a Self Assessment return for 2019-20. HMRC are urging them to do so within 30 days or face having to repay the grants.

Eligibility for the first three SEISS grants was based on recipients having self-employment income for 2018-19 and 2019-20. HMRC have identified those grant recipients who have either not submitted a 2019-20 return at all yet, or whose submitted return did not include the self-employment or partnership pages.

Those taxpayers will now be receiving a letter from HMRC confirming that they have 30 days to either file or amend their 2019-20 return to include income from self-employment, or to repay the grants in full. Late returns will be subject to Late filing penalties unless the taxpayer has a Reasonable excuse. Amendments to returns should not result in penalties.

The letter also reminds taxpayers who ceased to trade in 2019-20 that:

  • They will need to repay their grants as they were not eligible for them.
  • If repayment is more than 90 days from the date of receipt of the grant then penalties may be due.

Useful guides on this topic

COVID-19: Self-Employment Income Support Scheme (SEISS) (now ended)
Self-Employment Income Support Scheme (SEISS): support for the self-employed during the Coronavirus crisis. The fifth SEISS grant covering May to September 2021 was open for claims until 30 September 2021. 

COVID-19: Taxation of Coronavirus support payments
This guide summarises the tax treatment of grants paid during the Coronavirus pandemic.

Grounds for Appeal: Reasonable excuse
What is considered to be a 'reasonable excuse' when a taxpayer makes an appeal against a tax compliance failure?

Penalties: Failure to Notify
What tax penalties apply if you fail to notify HMRC that you are chargeable to tax? Can they be appealed or reduced?

External links

Source: ICAEW


Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

 

Comments (0)

Rated 0 out of 5 based on 0 voters
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad