Failure to notify them of an overpayment of Coronavirus financial support could lead to fines, says HMRC.

Covid-19 hit businesses hard and there were many financial support packages announced to try and cushion the blow for UK businesses during lockdown.

However, HMRC is now looking to make sure none of those payments were fraudulently obtained. 

What is a failure to notify? 

If you’ve received a coronavirus support payment that you are not entitled to, you must tell HMRC about this by the end of the notification period. If you do not do this, it is known as a ‘failure to notify’.

Notification periods

Self Employment Income Support Scheme:

• 90 days after the date you received the amount you were not entitled to
• Where you need to tell HMRC that you have amended a tax return on or after 3 March 2021 in a way which means you’re entitled to a lower grant than you received if:
• The amendment to your tax return was made before you received the grant, you must tell HMRC within 90 days of the date you received the payment
• The amendment to your tax return was made after you received the grant, you must tell HMRC within 90 days of the date you received the amendment
• You do not have to tell HMRC if you amended a tax return on or after 3 March 2021 and your grant amount has lowered by £100 or less.

Coronavirus Job Retention Scheme:

• 90 days after the date you ceased to be entitled to retain the amount you were paid, which could be because of a change in your circumstances
• You have not used the payment to pay the costs it was intended to reimburse, within a reasonable period of time (for example, to pay your staff)
• In all other cases, 90 days after the date you received the amount you were not entitled to.

HMRC have put together a set of guidelines on how to notify them of an overpayment and the penalties for businesses who don't. 

Read the guidelines

GOT ANY QUESTIONS?

If you're a BPCA member and you have any questions about Covid-19 support, let us know and we can try to find out the answer for you.

technical@bpca.org.uk

Icon image: HM Treasury/flickr