Penalties for over claimed CJRS, SEISS and “eat out to help out” grants

HMRC have announced that they will be imposing penalties of up to 100% of the amounts over claimed CJRS, SEISS and “eat out to help out” grants, on businesses during the coronavirus pandemic so make sure that your claims are correct.

The penalties depend on whether or not the over claim is the result of a deliberate error and whether or not the disclosure was prompted by HMRC. The penalty may be reduced where the taxpayer assists HMRC in correcting the error.

Many over claims may be the result of careless errors or a misinterpretation of the rules which have changed many times in the last 9 months so we hope that HMRC will apply the rules with a light touch and focus on those that have abused these schemes.

We understand that HMRC are writing to 4,000 catering establishments that they suspect may have over claimed under the “Eat out to help out” scheme that ran in August.  Traders are being asked to check their claims and respond within 60 days or face an HMRC compliance check.

Need more information?

Do you need more guidance on the penalties on over claimed CJRS? Feel free to contact us – we understand this is a difficult time for all during the coronavirus pandemic. We offer a wide range of services which are unique to you and your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

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