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Incorrect SEISS information delays processing of SA returns

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HMRC has held up processing 2020/21 self assessment returns where the return did not correctly show details of the taxpayer's SEISS grant. 

28th May 2021
Community Assistant AccountingWEB
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The rumour mill recently churned out a piece of information relating to HMRC delaying SA302’s and the release of overviews, which circulated round the Any Answers forum of AccountingWEB:

“Just heard a rumor that HMRC are delaying printing of SA302's and overviews,” commented AccountingWEB member johnjenkins. “[They] want to check the validity of grants received before allowing SA302's and overviews to be printed if the fourth grant has been claimed.”

The story was cited as originating from “someone in Halifax and a colleague”. While this might not be the typical source for information on HMRC policy, there is a hold up with processing self assessment returns. 

Reasons for delays

HMRC told AccountingWEB that a number of taxpayers have experienced a delay in the processing of their 2020/21 self assessment returns. It said the issue happens when returns don’t show details of the SEISS grants correctly or the information does not match HMRC’s records.  

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Replies (16)

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By rockallj
28th May 2021 11:10

I’m experiencing my first of these. I was told by a very helpful HMRC officer that they are receiving numerous calls about this. If the return is filed by 19th June any processing/ repayment may be affected. Refunds should be made by 5th July.

What I don’t know is if such delays are random or if SEISS grant validations have failed. Some official announcement about this policy decision by HMRC asap is welcomed.

Thanks (1)
Replying to rockallj:
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By Hugo Fair
29th May 2021 17:41

"by 5th July" is the target for those cases sorted by the software fix that HMRC are currently working on ... but they say any still requiring manual intervention (aka human review) after the software fix will be considered AFTER that date (with priority supposedly given to 'vulnerable customers' - but without any indication as to how that is defined or notified to HMRC).

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By arthvirg230
01st Jun 2021 09:40

Having spent and hour on the phone this morning the latest guidance is now "there is now no timescale for the expected repayments - you are welcome to write in and make a complaint"

Beggars belief!! we ae dealing with an organisation clearly not fit for purpose -totally useless and failing miserable in any kind of taxpayers charter. And they still think MTD for self assessment will work? HMRC are a shambles!

Thanks (9)
By birdman
01st Jun 2021 09:42

As we had no input into the claims and are reliant on client letting us know figures, where claims went into personal accounts this gives the opportunity for errors to creep in. I have one delayed CIS reclaim case, and have a horrible feeling it's down to a £2 error....

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Replying to birdman:
Chris M
By mr. mischief
01st Jun 2021 17:41

It may just be typical HMRC slow pay no pay. I have one 2020-21 CIS reclaim being delayed for "incomplete 2019-20 FPS". Except that:

1. I have confirmations from the HMRC database of successful 2019-20 submissions.
2. 2019-20 is of course nothing to do with the repayment claim for 2020-21.
3. HMRC paid the 2019-20 claim in full in June 2020.

Just the usual load of drivel from HMRC to hold up the cash flow. Complaint Case raised, Compensation Claim threatened. Don't mess about, get the hobnailed boots on and get kicking!

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By OrmeGoat
01st Jun 2021 09:56

If only HMRC had allowed accountants to be part of the claims process!

Thanks (5)
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By Ian McTernan CTA
01st Jun 2021 10:23

Submitted subbie repayment claims and nothing. Even managed to speak to a helpful HMRC employee who told me the Return had been captured but hadn't been processed and they would get it pushed through. That was a month ago....

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By johnjenkins
01st Jun 2021 10:53

Sometimes, Tallula, a trusted source (not the man down the pub) is a lot more accurate than what comes out of HMRC. There is another aspect to this that you didn't mention and that is, those that have had grants may not now be able to get mortgages. You may want to check with lenders as to how accurate that is.
Congratulations Boris and Carrie.

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By petestar1969
01st Jun 2021 10:54

I've had two client returns get stuck because of SEISS grants. I was told via HMRC's agent lne that all returns with grants on were being pulled for manual processing due to the software issue they are now fixing.

They have both now been processed. One was a refund that was not affected by the grants the other was corrected by HMRC as the client told me his SEISS grants figure was £70 less than it actually was and that's what I put on the return.

Thanks (1)
Replying to petestar1969:
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By johnjenkins
01st Jun 2021 11:42

Now if we had access to the grants then that wouldn't happen.

Thanks (3)
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By PK Busness Services
01st Jun 2021 12:29

yet again another example of the incompetence of HMRC
when is someone going to a complete root and branch overall of this organisation
yet again last week was stuck on hold for almost an hour on the supposed ADL should be answered in 90 seconds not minutes how would clients feel if they were on hold for 90 mins a time

as for MTD for IT like the VAT its got nightmare waiting to happen written all over it

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By johnjenkins
02nd Jun 2021 09:46

I know it's a bit off topic but when you look at this scenario together with others you will see my point.
Some years ago there was a brilliant concept called "agent strategy". I was impressed. Then of course HMRC realised that when agents like something it must be destroyed. Sure enough the gap between agents and HMRC has never been so wide with no end in sight. This thread is yet another HMRC ignorant way of working. It is time HMRC stopped penalising the many for the very few that stray.

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By djames
09th Jun 2021 00:00

Having submitted a few tax returns in April with tax refunds (who also claimed one or more of the grants) and these were refunded as normal, I thought I was OK. Then I had one client ring me to ask me chase up his repayment for a return that we'd submitted 25th April, and then the fun and games started.

Every tax return we've submitted after that with a grant on has been 'shelved' by HMRC. Having rang them and got the same b**x as everyone else (5th July blah blah, grants could be in wrong box, bulls**t) I'm wondering if it's worth submitting any further tax returns until they've got their act together. Obviously it's something they've instigated around the end of April, as everything appeared fine before then.

There is no way any of those returns we've submitted are incorrect, I've got printouts from the client for the grants they've claimed and the figures have been put in the right box. It's just sheer incompetence and zero accountability from HMRC. And while they expect us and our clients to adhere to all deadlines and carry on as normal, they're all still working from home doing their knitting on part time hours, and ignoring the phone when Countdown is on.

I've got the same situation with company CIS claims - claims reduced or refused in their entirety as their 'records' (whatever shoe box they're kept in) don't agree with what we've got - even in the most straightforward of cases where there is just one tax statement from a contractor for the whole year. I don't think anyone is even looking at the 'records' in most cases. They probably can't access the 'records database' from their armchair in front of Bargain Hunt, so just add it on to their rejected pile.

One client in particular has had £23k cis suffered, and after PAYE deductions and subby cis tax they were due a refund of £16k. HMRC can only find £2k of cis tax suffered (despite this £2k coming from the same contractor who had deducted the majority of the £23k), so they've had no refund and are now been chased for the 'arrears of PAYE'. We've sent copies of all tax vouchers , bank statements and cross referenced invoices, but it will be months before it's resolved. You couldn't make it up.

Thanks (2)
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By euanjohn
11th Jun 2021 15:13

I've got a few submitted returns containing SEISS grants and they are just frozen on HMRC system without any message to explain what is going on.
Like everybody else I am completely fed up with HMRC's attitude. If a taxpayer does not file something right on time they are slapped with a penalty. HMRC, on the other hand, feel that they can take as long as they like do anything and the taxpayer gets no redress, apology, or compensation.
The Institute of Chartered Accountants should be be conducting an aggressive publicity campaign in the Press and social media pointing out how unfair this is. They should be our Trades Union not a bunch of pussycats who are content to quietly cover up all HMRC's inadequacies and continue supporting their crazy plans to digitise a mess - which will only create an even bigger mess.

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By STEPHEN PAUL Westerman
22nd Jul 2021 17:56

Has anyone filed an amended tax return to correct an incorrect amount of SEISS grant. I had a client with a captured but not processed tax return and upon checking his grant figures found there was a £2 error on the grant total. I rang HMRC and they confirmed the £2 error would cause the return not to be captured. I suggested we file an amended tax return to correct this minor error, (and reduce their workload), and asked if this would then enable the return to process. They said it would not without really sounding sure. So just wondered if anyone had tried to file an amended return to correct this.

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Replying to STEPHEN PAUL Westerman:
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By Swabber
24th Jul 2021 09:50

I was told the amended return would just end up queueing behind the original one so nothing would be achieved. I spoke to HMRC on Thursday and the date to clear these is now ''end of October''. But they don't seem to be working through them in order of submission. Also new returns are presumably being added to the backlog every day - so wouldn't the correct date be sometime after January 31st 2022??!!

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