90 days to notify HMRC of overclaimed COVID grants

Taxpayers who have received CJRS or SEISS grants are urged to doublecheck their entitlement as the 90-day period to inform HMRC of any overclaimed amounts is now law.

If you’ve claimed too much

If you want to delete a claim in the HMRC online service, you must do this within 72 hours.

If you have made an error in a claim that means you’ve received too much, you must pay this back to HMRC. You can either:

  • tell HMRC as part of your next online claim (your new claim will be reduced and you’ll need to keep a record of the adjustment for 6 years)
  • contact HMRC to pay the money back (you should only do this if you’re not submitting another claim)

If you’ve overclaimed a grant and have not repaid it, you must notify HMRC by the latest of either:

  • 90 days after the date you received the grant you were not entitled to
  • 90 days after the date you received the grant that you were not longer entitled to keep because your circumstances changed
  • 20 October 2020

If you do not do this, you may have to pay a penalty. If you do repay any overclaimed grant, this will prevent any potential tax liability in respect of the overpayment of Coronavirus Job Retention Scheme. HMRC will not be actively looking for innocent errors in their compliance approach.

Find out more about when you may have to pay a penalty and other information, including:

  • how HMRC decides how much the penalty will be
  • when HMRC will not charge a penalty
  • how to appeal against a penalty

If you have not claimed enough

If you made an error in your claim that has resulted in receiving too little money, you will still need to make sure you pay your employees the correct amount. You should contact HMRC to amend your claim and as you are increasing the amount of your claim, they may need to conduct additional checks.

Before 31 July, you must:

  • make sure to include all eligible employees on claims that you still need to make for periods up to 30 June
  • make any updates you need to on claims you’ve already made

After 31 July, you will:

  • no longer be able add an employee to any existing claims for periods up to 30 June, that should have been included on a claim submitted before that date
  • still be able to make amendments for any other errors that resulted in you not claiming enough.

Source: HMRC Guidance