SEISS Grant Guidance

This week comes the news that HMRC have finally issued guidance regarding the SEISS grant letters that have been sent to numerous businesses.

If you have had one of these letters and are confused as to what it means – we have some guidance to help you.

Basically, if you have had a grant but were not eligible for it – then you must inform HMRC immediately. There are different examples of why you were not eligible as per below.

What is the SEISS Grant?

SEISS is the Self Employment Income Support Scheme that was brought in by the government during the first lockdown. The five grants which spanned the last eighteen months, helped those who are self-employed who may have had to close their business or had it affected by the lockdown and Coronavirus pandemic.

Using these grants was based on a number of factors, including your self-assessments, and a profits test.

I have a letter, what does this mean?

You may have a letter if HMRC thinks you may have applied for the grant but not been eligible.

You would not have been eligible for the grant, and therefore you must tell HMRC, if:

  • For the first or second grant, your business was not adversely affected.
  • For the third, fourth or fifth grant, your business had been impacted by reduced activity, capacity or demand, nor was there an inability to trade in the periods relevant to the applications.
  • You were intending to close your business down.
  • Your business was incorporated.

You must also tell HMRC if you:

  • received more than you were entitled to.
  • amended any tax returns on or after March 3rd, 2021, that means you’re no longer eligible or are entitled to a lower fourth or fifth grant than originally received.
  • Made a mistake in reporting your turnover in the claim for the fifth grant, meaning you are entitled to a lower grant than received.
  • Have the letter from HMRC which states that you need to pay back some or all of the grant.

You may have to pay a penalty as well as any grant money owed so it is important to let HMRC know if you think anything has changed to make you ineligible for the grant amount paid to you.

You do not have to tell HMRC if the grant amount was £100 or less or your eligible amount has been lowered by £100 or less.

If you have received a letter and want to discuss this further, please call us here at d&k Accounting to discuss further. You can also call HMRC directly to find out more information.

You do not have to pay the SEISS grant back if you have applied for it correctly and nothing has changed, however you will still need to report it on your self-assessment tax return. The SEISS grants are also classed as taxable income.

Where can I find more guidance on the SEISS Grants?

Well, as you’re here – we can help! We are available to chat; drop an email to or call on 01302 613515.


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