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Where grants claimed under the self-employment income support scheme (SEISS) do not correspond with records held by HM Revenue & Customs (HMRC), it will auto-correct 2020-21 tax returns and issue a new SA302 calculation to both taxpayer and acting agent.
Corrections may be necessitated if:
- The grant amount was omitted;
- The amount received appears in the wrong box on the return; or
- Where HMRC believes a taxpayer was not eligible for the SEISS because of missing self-employment or partnership pages.
If your return is auto-corrected to include details of an SEISS grant, but you did not receive a grant, you should speak with your agent or HMRC immediately as this could point to fraudulent activity.
2020-21 self-assessment tax returns should accurately report the first three SEISS grants, as the grants are taxable in the tax year that they are received.
HMRC has only been auto-correcting returns since 19 June, meaning that any received before this date will still require manual input and so the wait time for processing these may be longer.
If you receive notification that your tax return has been auto-corrected, you may choose to either accept the correction and amend the return, if appropriate, or dispute it.
If you intend to dispute a correction, you should ensure this is notified to HMRC within 30 days of the correction notice and in writing, where possible.
A careful review of your records, and the right professional advice where necessary, should enable you to determine the applicable response.
Where you have received any SEISS or other taxable grants, your accountant or adviser should be made aware of these to enable them to accurately prepare your tax returns.