SEISS Grant Overpayment: Have you had a letter from HMRC?


HMRC has begun writing to taxpayers who need to repay some or all of their fourth or fifth self employment income support scheme (SEISS) grant following an amendment on their tax return. They are also checking whether amendments mean that the taxpayer claiming the grant will now be entitled to the lower level grant (30%) as opposed to the higher level (80%) when they receive their fifth instalment.


HMRC based their calculations for the fourth and fifth grant payment on the 2016/2017 to 2019/2020 tax return data they held in 2nd March 2021. All returns in the date range filed by 2nd March 2021 were considered, along with all amendments made by that date. It was required that HMRC be notified of any amendments to relevant tax returns made after 2nd March 2021 which would cause the amount of the grant to be reduced by over £100, or would remove the taxpayer’s eligibility for the SEISS grant and the appropriate amount of grant repaid.

Relevant amendments would include corrections by HMRC, amendments by the taxpayer and amendments made by HMRC in the event of an enquiry. Contract settlements, revenue assessments or charges raised would not be included.


Included in the letter from HMRC is a formal assessment of the taxpayer’s SEISS balance and details of how the amount due for repayment has been calculated.

Should the taxpayer accept HMRC’s assessment, they should follow the instructions on their letter and quote the reference number on their assessment letter (which begins with the letter ‘X’) in order to make payment.

In the event that the taxpayer is unable to make payment immediately, they should contact HMRC by phone directly on 0300 322 9497 and agree a time to pay arrangement.


If payment is not made and a time to pay arrangement is not agreed within 30 days of the due date, HMRC will apply a 5% late fee. Additionally, HMRC will apply interest to any outstanding balance not paid by 31st January 2023.

In the event that the taxpayer would like to dispute the assessment they should submit an appeal in writing within 30 days of the date on the letter from HMRC.


For further information on your specific circumstances, contact us on 0115 784 4662

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