17 June 2022

Repayment of SEISS grants: tax credits and universal credit

If a tax credit claimant or universal credit claimant has to repay part or all of a SEISS grant they have received, the repayment might affect their award.

For tax credits, if HMRC have finalised the award using an income figure that includes a SEISS grant amount that the claimant later repays, the claimant should contact HMRC’s tax credits helpline to inform them of the adjusted income figure. Our understanding is that HMRC may be able to use their decision-making powers to re-finalise the tax credits award based on the adjusted income.

Universal Credit claimants who pay back any part of a SEISS grant should report this to DWP. Our understanding is that DWP will treat the grant payment as a self-employed expense in the period the payment is made to HMRC. DWP won’t revise previous awards of Universal Credit, as they correctly reflected a claimant’s earnings at the time the SEISS grant was originally received.