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Thousands overpaid self-employed income support - MSE News

Up to 16,000 self-employed people who received Government grants to support their income during the coronavirus crisis have been paid too much after their payments were miscalculated. If you've been overpaid, the good news is you WON'T have to pay anything back - but you may now receive less than expected if you apply for the second income support grant..

Read the full story:

'Thousands overpaid self-employed income support'

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  • Grumpy_chap
    Grumpy_chap Posts: 18,431 Forumite
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    Like the forgotten 3million 😉
    However, as I read the article, the mistake is by HMRC and not the individuals.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Really should have to pay it back. This is taxpayers money which is desperately needed for other things 
    That's a moral dilemma. That requires it's own MSE generated discussion thread. 
  • diggingdude
    diggingdude Posts: 2,496 Forumite
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    Really should have to pay it back. This is taxpayers money which is desperately needed for other things 
    That's a moral dilemma. That requires it's own MSE generated discussion thread. 
    Don't be silly, the moral dilemma's are made up :)
    An answer isn't spam just because you don't like it......
  • I am a self employed person who has had the opposite treatment from HMRC. They have underpaid me by hundreds of pounds, saying that my self-assessment online forms contained nil amounts for the last two years. They will not admit the error. My MP has been helping since May, but HMRC will not change their stance. They sent me £76 for the whole 3 months, which equates to less than £1 per day. I haven’t been able to do my work since March, so am really struggling. 
    If HMRC has made errors of almost 16,000 over-payments then they must have underpaid thousands of people too; people like me.
  • Grumpy_chap
    Grumpy_chap Posts: 18,431 Forumite
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    Even if the self-assessment forms were not blank, if you had high business expenses off-setting the income, that could result in nil self-employed profits.
  • What about the underpaid, my husband had his grant for profits in 2018/19 halved because he came out of full-time employment 3 weeks before the end of the tax year 2017/18 so they halved his grant to £6575 because he declared £900 in his payee tax return because hmrc sent him self assessment reminders! He didn't have to fill one in because it was less than £2500. It's disgusting when the government enforced lockdown and for my husband who is a ceramic Tiler he couldn't work! Appealed but hmrc are not willing to admit they are wrong. And as for the trolls going on about taxmoney, he pays his taxes and ni like everyone else. 
  • Really should have to pay it back. This is taxpayers money which is desperately needed for other things 
    You seriously need to get a life. Like the self employed don't pay taxes!! 
  • Jeremy535897
    Jeremy535897 Posts: 10,739 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    What about the underpaid, my husband had his grant for profits in 2018/19 halved because he came out of full-time employment 3 weeks before the end of the tax year 2017/18 so they halved his grant to £6575 because he declared £900 in his payee tax return because hmrc sent him self assessment reminders! He didn't have to fill one in because it was less than £2500. It's disgusting when the government enforced lockdown and for my husband who is a ceramic Tiler he couldn't work! Appealed but hmrc are not willing to admit they are wrong. And as for the trolls going on about taxmoney, he pays his taxes and ni like everyone else. 
    This is not an underpayment. It is as a result of how SEISS is calculated. You may not agree with what the law says, like many others, but it isn't going to change.
  • Grumpy_chap
    Grumpy_chap Posts: 18,431 Forumite
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    they halved his grant to £6575 
    I am not sure what you feel was "halved to £6575".  The maximum first SEISS grant was £7500 and maximum second SEISS grant £6570.  So, if the first grant was "halved" to arrive at the £6575 figure paid, it would never have been paid at double that because the cap would have applied.
    he declared £900 in his payee tax return because hmrc sent him self assessment reminders! He didn't have to fill one in because it was less than £2500. 
    If you are referring to the Trading Allowance, the limit on that is at £1000, not £2500.  Either way, the £900 is lower.
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