HMRC addresses SEISS grant data concerns
HMRC has come back to AccountingWEB about recent problems raised by AccountingWEB members over erroneous SEISS figures appearing in taxpayers’ online accounts.
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HMRC and IT do not mix. This is just one API. Just image the chaos when MTD ITSA starts with its dozens of APIs. And it isn't just HMRC that have made a mess of this. PTP and Iris still doesn't download the SEISS at all and Wolters Kluwer puts it in the SEISS overpaid box.
I wrote to my MP regarding how HMRC were being extremely slow to deal with CIS tax refunds etc where clients had received SEISS grants. The reply from HMRC is shown below. I've slightly updated the text to remove names and privacy data. Hope it is of use to some of you.
Dear MP
Thank you for your letter of 26 July 2021 on behalf of your constituent about processing Self-Assessment returns where a customer has received a Self-Employment Income Support Scheme (SEISS) grant. I am replying on behalf of the Chief Executive as I have responsibility for this policy area.
We have received 2020-21 tax returns where SEISS grants were not reported in the way we expected. For example, the amount of SEISS grant(s) reported did not match the figure we paid a customer, or SEISS grants have not been included in the correct box on the return.
We have now improved our processes and any returns received on, or after, 19 June have been automatically checked by our system, with the SEISS grant figure changed where necessary. For returns received before 19 June we need to correct these manually.
We are working hard to process them in the order they were sent to us.
You ask that we should process all tax returns submitted by authorised tax agents (accountants) as these should have been submitted with the SEISS grants included. I understand the frustration and the impact of these delays, which is why we are processing them as quickly as possible. We do need to check all returns where the SEISS grants have been reported in a different way than we expected, even when submitted by a tax agent.
There is support for customers facing financial hardship due to the delay, and anyone in this situation should call us on 0800 024 1222 to speak to an advisor.
I understand your concern that SEISS grants could be taxed twice, which is why are sending customers a statement of account which explains what we have corrected and why. We will also send this to their agent. Depending on the changes made and how the customer initially completed their return, customers may need to submit an amended tax return to make sure they pay the right amount of tax. It is important the customer checks any adjustment and statement of account to make sure they are accurate.
To make it easier for customers to make changes to their tax returns, we have recently updated our Business by Telephone direction and are now able to process amendments to SEISS grant entries over the phone. Authorised agents can also make these amendments by telephone, on behalf of their clients.
You can find further information on how to check the adjustment, and any next steps required, at
www.gov.uk/guidance/check-if-you-need-to-change-your-self-assessment-ret...
Paul Riley
Director