HMRC made the mistake but I'm paying for it. 11 July 2022 at 6:54AM in Cutting tax 5 replies 351 views

colinjoss67

Apologies if this isn't the right forum for this but I couldn't find a more appropriate one.

During lockdown I received SEiSS. But then I received a letter from HMRC dated November 2 2021, regarding the Self-Employment Income Support Scheme (SEISS) stating that I had not submitted a Tax Self-Assessment return for 2019/2020. I called the SEISS helpline to query this as I was certain I had completed the form. However, the HMRC person on the helpline stated that they could not see my Tax Self-Assessment return for 2019/2020. They suggested I speak to the Self-Assessment helpline. 

On November 5, 2021, I called the Self-Assessment helpline and spoke to the HMRC person. According to their records, I had submitted a Tax Self-Assessment return for 2019/2020. The HMRC person suggested the discrepancy could be due to two computer systems being out of sync. I asked if I should contact the SEISS helpline to confirm that, according to your Self-Assessment team, I had submitted a Tax Self-Assessment return for 2019/2020. Your colleague stated that there was no need as they would update the system. 

I received a letter dated February 9 2022 from the SEISS requesting me to pay back the SEISS grant for 2019-2020. I didn’t connect this letter with the previous letters mentioned above and therefore I repaid the £11,328 on February 16 2022. 

I received a letter dated March 14, 2022 from SEISS again stating that I had not submitted a Tax Self-Assessment return for 2019/2020. It was only with letter that I realised the repayment of the SEISS grant for 2019-2020 related to the original letter I received on November 2 2021. I called the SEISS Helpline and again they stated I had not submitted a Tax Self-Assessment return for 2019/2020. And again, they suggested speaking to the Self-Assessment helpline. 

On March 22, I spoke with one of your colleagues on the Self-Assessment helpline. Again, they said that I had submitted Tax Self-Assessment return for 2019/2020. However, after further investigation it appears that the SEISS were referring to the SA103S form and the Self-Assessment helpline were referring to the SA100 form. Hence, why SEISS were stating that I hadn’t submitted a return and the Self-Assessment were stating that I had submitted a return. 

I received the SA103S form in mail from HMRC a few days later, completed it and returned it, along with a letter stating what had happened and asking if I would be refunded the £11,328.

On July 7 I received a brief response from HMRC stating that "The last date for a review or a claim with 28 February 2022 and as your amendment was received after this date, any claim cannot be considered. Any grants already paid back cannot be reissued."

Now, given the fact that HMRC didn't find get to the root of my issue until March 22, I'm struggling to see how this can apply.

Has anyone e else experienced a similar issue? How did you get it resolved? 

Thanks

Pennywise

The problem is that without the SA103S form, their systems showed you weren't self employed, and therefore weren't eligible for the SEISS grants.  I'm not sure how it's HMRC's fault that you didn't submit the self employment supplementary section of your tax return when you were self employed.  The SEISS grants had VERY strict qualifying criteria and huge numbers of people were excluded for a variety of reasons.

Jeremy535897

One of the conditions of the SEISS grants was that you had to trade in 2019/20. You completed a tax return with no SA103, which means you declared that you had no self employed income in 2019/20. You therefore failed this condition.

This has happened before due to a taxpayer continuing to be self employed, but earning under the reporting limit of £1,000. Consequently the condition of trading in 2019/20 was met, but there is no evidence to this effect. Is this your situation?

colinjoss67

Yes, Jeremy, that's the case. I earned £0 but I had expenses (phone etc.) 

Jeremy535897

See https://forums.moneysavingexpert.com/discussion/6370790/seiss-and-compliance-review-even-though-i-met-the-criteria#latest

It is not helpful if you received no income at all, as it is harder to argue you were actually trading.

silvercar

colinjoss67 said:

Yes, Jeremy, that's the case. I earned £0 but I had expenses (phone etc.) 

Earned as in profit or earned as in sales? Arguably if your sales were £0, you didn't actually trade.