HMRC has powers to recover coronavirus support payments (CSPs) through the tax system where the support schemes were not used as intended. HMRC issued a factsheet about the assessment and penalties which may be applicable, see Penalties for not telling HMRC about Self-Employment Income Support Scheme grant overpayments — CC/FS47. See also Penalties for not telling HMRC about coronavirus (COVID-19) support scheme overpayments — CC/FS11a on the penalties that HMRC might charge where an income tax charge has not been notified regarding overpayments made under certain coronavirus support payments.
Charge to income tax where person not entitled to payment
An additional charge to income tax arises for CSPs to which the recipient was not entitled. The charge is to income tax even if the recipient is a company chargeable to corporation tax1. It is notable that this income tax charge does not encompass the coronavirus business support grant schemes, the coronavirus statutory sick pay rebate scheme or a payment under the test and trace support payment schemes, ie it applies
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Web page updated on 17 Mar 2025 16:33