FA 2020 Sch 16 empowers HMRC to tax Covid-19 support payments. Taxpayers should check their CJRS and SEISS claims and notify HMRC of any mistakes within the 90 day deadline, unless they can repay the monies beforehand. Excessive claims may be rectified by declaring and paying income tax, unless HMRC issues an assessment. Failure to notify or error penalties may be levied too. Businesses that knowingly made incorrect claims and fail to notify (or repay) in time face failure to notify penalties of up to 100% of the excessive claims, as their behaviour is deemed deliberate and concealed.
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FA 2020 Sch 16 empowers HMRC to tax Covid-19 support payments. Taxpayers should check their CJRS and SEISS claims and notify HMRC of any mistakes within the 90 day deadline, unless they can repay the monies beforehand. Excessive claims may be rectified by declaring and paying income tax, unless HMRC issues an assessment. Failure to notify or error penalties may be levied too. Businesses that knowingly made incorrect claims and fail to notify (or repay) in time face failure to notify penalties of up to 100% of the excessive claims, as their behaviour is deemed deliberate and concealed.
If you are not a subscriber, subscribe now to read this content.
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