HMRC has confirmed the penalty regime for the Self Employed Income Support Scheme (SEISS) with harsh fines.
An overclaimed Self Employed Income Support Scheme (SEISS) grant includes any amount paid which the self-employed person was not entitled to or received payments of more than the amount HMRC said they were entitled to when the claim was made.
Overpayments must be notified to HMRC within 90 days of receipt of any Self Employed Income Support Scheme (SEISS) grant.
Penalties can be charged up to 100% on the amount of the Self Employed Income Support Scheme (SEISS) grant overpaid, but there is a long period for repayment, so, so long as overpayments are settled by the end of January 2022, fines will not be enforced.
When deciding the amount if any penalty, HMRC take account of whether the taxpayer knew they were entitled to the Self Employed Income Support Scheme (SEISS) grant when they received it, and when it became repayable.