Where a client has repaid one of the SEISS grants, the SA100 guidance notes state to enter the payments received on the Self-Employment pages and then any amounts repaid in boxes 1 and / or 2 on page 5 of the main return. By doing this though, the full amount of the total grants is being charged tax and NIC whereas the assumption is that it would just be the net of these two values that would be taxable.

Looking at BIM40456 it states “Where there is an assessment to recover overclaimed SEISS, CJRS, or payments made under any other Section 76 HMRC scheme (e.g. Eat Out to Help Out scheme), the amount of taxable Coronavirus Support Payments is reduced accordingly.  Where a claimant otherwise makes a repayment of any amount received under a Section 76 HMRC scheme, this should be treated as a reduction in the amount of taxable income received from the scheme.”

Therefore, it is our understanding, if the client repays the grants (or part thereof) before filing the return then you should simply reduce the amounts entered in the self employment pages to the net figures (and enter details in the additional information box to say what they are doing). If the repayment is after submitting the return you should file an amended return replacing the original grant figures with the net amounts.

Entering the amount of repayment on page TR5 could be disastrous: the original amounts in the self employment pages will still be subject to tax and class 4 and the amount entered on page TR5 will further increase the tax by 100% of the figure entered.