Sole Traders

Business Woman

HMRC is beginning to send out letters to many of the sole traders who applied for Covid-19 grants through the Self-Employment Income Support Scheme (SEISS), warning that they will need to be repaid.

Applications for the last of these grant payments closed at the end of September, so the tax authority has begun to issue letters about repayment ahead of the next tax return deadline on 31st January, 2022. Those who receive these letters are being told that either all or some of the money will have to be repaid, with penalties for those who do not comply.

HMRC data indicates that 9.1 million sole traders throughout the UK were given grants through this scheme, adding up to over £25.2 billion. Those who have to repay all or some of their grants and are worried about it may find that an accountant for sole traders in Goole or wherever they live can help.

Speaking to the Daily Record, Peggy de Lange from the Fiverr freelance site said that the SEISS scheme had been set up as a way of supporting sole traders whose businesses had been affected due to Covid-19 and that they were being made to repay grants too soon. She then went on to add:

“Asking freelancers to return this money whilst still facing the long-term impact of the pandemic fallout will likely only set them back further.”

De Lange pointed out that the demand for repayments had come when sole traders were already coping with rises in interest rates and energy costs.

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