HMRC are currently writing to taxpayers who made a claim for one of the first three COVID-19 Self Employment Income Support Scheme (SEISS) grants in 2020, but have yet to either file a self assessment tax return for 2019/20, or where a return has been submitted but did not include the relevant self employment or partnership pages.
In a hard line, HMRC is cracking down on those individuals that have failed to meet the grant criteria, urging them to either file a valid return, or amend an existing return within 30 days of receiving a letter, or repay the grant(s) in full.
Late returns will, as always, be subject to late filing penalties (unless there is a reasonable excuse). However, return amendments should not result in penalties.
Likewise, taxpayers ceasing to trade in 2019/20 but who claimed SEISS grants are reminded that they need to repay these grants in full as they were not eligible for them. Where repayment is after 90 days from the date of the grant receipt, penalties may be due.