Royalty payment after SEISS grant

Received an unexpected payment after 4th SEISS Grant

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Hi there,

Just wonder if anyone could shed some light on this subject. I currently do my own self assessment and work as a freelance composer for film/tv etc.

I applied for and received 4/5 of SEISS Grants since the film/tv industry effectively shut down during the pandemic. I make a large chunk of my living from music royalties and even they were expected to dip.

Currently doing my self assessment for 21-22 and my Royalty payments (which are paid out quarterly) suddenly jumped up halfway through the year quite substantially but obviously, as is the nature of royalties - unexpected.

My earnings will be visibly a lot larger than the preceding years and I assume HMRC will ask for the 4th SEISS back? Should I get ahead of this and just pay it back now before I submit my return?

Many thanks!

CW

Replies (5)

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By David Ex
04th Sep 2022 15:12

You need to read the terms of the grant and see what those say. Alternatively, if you don’t want to pay for advice, there is a lot of information out there if you do a Google search.

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Replying to David Ex:
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By Hugo Fair
04th Sep 2022 15:27

Hint: It's the facts (of OP's circumstances and of the terms of the grant/claim) AS AT the time of the claim that matter - not any facts that since come to light but that couldn't have been known or expected at 'claim time'.

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Replying to Hugo Fair:
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By CromulentWord
04th Sep 2022 15:36

Is it something that will automatically be investigated when the 21-22 return is filed? Perhaps ringing them is worthwhile.

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Replying to CromulentWord:
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By Hugo Fair
04th Sep 2022 15:58

Sorry ... but the only honest answer to that is 'Who knows?'

By definition there's no prior precedent for SEISS ... all we know is that HMRC have the software to 'pull out' returns (via a wide range of criteria) for human inspection - or even just to send automatic 'nudge' letters as a means of seeing if they can frighten taxpayers into volunteering to pay back the grant.

So, is it possible? Yes
Is it likely? Maybe (depends on their other priorities)
Does it matter if they do? That's the one with which you need to concern yourself - hence the suggestion to search out the facts and do a little (not so light) reading!

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Replying to Hugo Fair:
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By CromulentWord
04th Sep 2022 16:02

Thanks mate, will do. Think I’ll be bringing in an accountant from here on in to handle all of this stuff in future too!

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