Self Employment Income Support Scheme Fraud

The SEISS was introduced by the Government in March 2020, to help qualifying self-employed people (individuals and partnerships) to cope with any loss of income resulting from the impact of the coronavirus pandemic on their business.

In all, there were five rounds of this grant, with the latest deadline for applications ending on 30th September 2021.

SEISS amounts received constitute taxable income and so must be shown on tax returns, with income tax as well as national insurance due on the amount.

Latest figures from HMRC show 9.1 million self-employed earners made use of the SEISS.

However, HMRC believe that a substantial number of applications were made by individuals who either did not meet all the qualifying criteria, or who claimed amounts in excess of their eligibility.

Using the information that they hold, HMRC will be able to compare taxpayer’s profits from previous years against the various SEISS claims that have been made. This means that if there is a discrepancy between the expected claim and the return, there is a strong likelihood that HMRC will be aware of this.

Letters have already been issued by HMRC to notify the individuals who they believe may have benefitted more than they should have done from the SEISS, and failure to repay any overpaid amounts within the specified time limit may result in penalty charges being levied by HMRC.

If you feel you have wrongly received a letter from HMRC or need assistance in coming forward, please get in touch for a free initial consultation on your situation.