22 Apr 2022HMRC has started to recover overpayments of Self-employment Income Support Scheme (SEISS) grants. From April, HMRC is writing to taxpayers whose entitlement to the fourth or the fifth SEISS grant has reduced by more than £100 to ask them to repay amounts that were overpaid. A taxpayer's grant is calculated by using the information from their amended tax return. HMRC's letters include a date by which the taxpayer must make the repayment. If the payment is over 30 days late, a late payment penalty of 5% of the unpaid tax will be applied. Taxpayers who need to repay grants can make use of HMRC online tools to help them calculate what they owe. Individuals who receive a letter from HMRC are required to use the payment reference beginning with X when making their repayment. Taxpayers who are not able to pay in full may be able to set up a Time to Pay arrangement with HMRC, which allows them to spread payments. More information on making a repayment can be found here.