Fines and penalties for abuse of the 4th SEISS have confirmed by HMRC as more and more applications are submitted.
The 4th SEISS Grant was made available to claim from 22 April 2021, and covers 01 February 2021 to 30 April 2021. The grant is calculated at 80% of 3 months’ average trading profits, paid out in a single instalment and capped at £7,500.
Overclaimed SEISS grants include any amount of the grant that the individual was not entitled to receive – within 90 days of receipt of an overpayment, the individual must notify HMRC.
Fines can be charged up to 100% on the amount of the SEISS grant that you were not entitled to receive. However, if the individual was not aware that they were not entitled to their grant when they received it, a penalty will only be charged if the grant is not repaid by 31 January 2022.
HMRC is also warning individuals looking to apply for the SEISS grant to be aware of scams circulating, with fraudsters trying to trick the self-employed into making fake claims using emails and text messages.
For more information on phishing and scamming, check out our blog on HMRC Scam Emails and Calls.
Knowing how to take control of your business finances to maximise profits can be difficult, especially with the current climate. Knowing the common mistakes to avoid can be difficult and can leave you feeling unsure.