Penalties for failing to notify HMRC about overpayments from Self-Employment Income Support Scheme

New guidance advises amount of penalty will depend on whether person knew they were ineligible when they received grant

New guidance has been issued setting out when penalties may be charged for failing to notify HMRC about overpayments from the Self-Employment Income Support Scheme (SEISS).

In Self-Employment Income Support Scheme - receiving grants you were not entitled to, HMRC advises that where a SEISS grant has been paid to a person, to which they are not entitled or only entitled to part, then that person must notify HMRC on the latest of - 

• 20 October 2020; or
• 90 days after the grant is received.

The guidance continues - 

'If you do not notify us within the notification period about an amount of grant you claimed and were not entitled to, we may charge you a penalty.

If you knew you were ineligible for the grant when you received it, any penalty will be based on the amount you were not entitled to receive and did not repay by the last day of the notification period. If you did not know you were ineligible for the grant when you received it, we will only charge you a penalty if you have not repaid the grant by 31 January 2022.

When deciding the amount of any penalty, we will take account of whether you knew that you were not eligible for the grant when you received it.' 

NB - HMRC also advises that any decisions relating to overpayments or penalties are appealable.

Self-Employment Income Support Scheme - receiving grants you were not entitled to is available from gov.uk