Should I pay back my self employed government grant

dannygn123

I've been really stupid. I claimed the first two self employment grants as according to HMRC I was eligible. Based on my previous tax returns I was only entitled to £953 for the first grant and a bit less for the second so it's not much but the tax year 19-20 I barely worked so I don't think I should have claimed it. I have until the 20th to pay it back. I'm guessing as I wasn't working for several months before covid I should pay it back? I didn't really understand it fully at the time. I can pay it back online but I am worried they could fine me if the reason I say was that I have barely been working for the last year, even though I am still registered as self employed it's obvious I'm not entitled to it. Is it possible they could fine me even if I pay it back before the deadline. 

I don't know why I did it really I guess I thought I might go under the radar as it's such a small amount. But then when I submit my next tax return they will see I haven't worked. I can't afford to pay them both back now but if I pay the first one back then am I right in thinking I have 90 days to pay the second one back. Could I get in to trouble or will I be fine if I just pay it back

Thrugelmir

Payback what you afford to. Minimises any potential damage. 

Jeremy535897

If you are convinced that you did not meet the criteria for claiming the grant, you should pay it back, but you need to get on with it as the deadline to do so without penalty could be tomorrow. See:
https://www.gov.uk/guidance/tell-hmrc-and-pay-the-self-employment-income-support-scheme-grant-back

The law says:
"4.2 The person must-
(a) carry on a trade the business of which has been adversely affected by reason of circumstances arising as a result of coronavirus or coronavirus disease,
(b) have delivered a tax return for a relevant tax year on or before 23 April 2020,
(c) have carried on a trade in the tax years 2018-19 and 2019-20,
(d) intend to continue to carry on a trade in the tax year 2020-21,
(e) if that person is a non-UK resident or has made a claim under section 809B of ITA 2007 (claim for remittance basis to apply), certify that the person’s trading profits are equal to or more than the person’s relevant income for any relevant tax year or years, (f) be an individual, and
(g) meet the profits condition."
You must have met (b), (f) and (g), and(e) is irrelevant. If you traded in 2019/20, even if it was "barely", you meet (c). Only you know whether you met (a) and (d).

callowman1980

Im in a similar situation and i agree its quite complicated and mistakes can happen. 
Im intertesed in whether you have filled out the form yet on the HRMC website where you declare you maybe have been over paid or ineligible? Can you share your experience with me? 

callowman1980

Thrugelmir said:

Payback what you afford to. Minimises any potential damage. 

Is this possible? Can you agree a repayment amount say spread over time?

Jeremy535897

You need to go through the process set out on your other thread. Then, if you need it, you can ask for time to pay, but there will be an interest cost if they permit it. See https://www.gov.uk/difficulties-paying-hmrc