Self-Employment Income Support Scheme

My Client is a travel courier and due to Covid, she has not worked in last 2 tax Years. She Claimed in both years SEISS grant. HMRC are now demanding that she pays back 2020/21 grant back as she did not work during 2021/22. She is now working and will have income during 2022/23 Tax year. My Client says this is unfair as she had spent or lived on this grant as there was no income during that year. Is HMRC correct to demand this grant back?

Hi,

It is unclear if your client has been issued with an officers assessment or if we amended her submitted Self Assessment tax returns to request repayment of the SEISS grants.

If your client was still self employed during each tax year but was unable to work due to COVID they should have included a self employment section to the 2020 to 2021 and 2021 to 2022 Self Assessment tax returns which should also include the SEISS grants received each tax year. If they have not they should amend the submitted tax returns.

If officers assessments have been raised your client should still amend their submitted tax returns to include the self employment information and make an appeal following the instructions shown on the officers assessment issued.

Thank you.