The total amount receivable for the first three month period (1 March to 31 May 2020, the 1st grant payment) was 80% of the relevant figure of “trading profit”, provided that the 80% figure did not exceed £7,500. The total amount receivable for the second three month period (1 June to 31 August 2020, the 2nd grant payment) was 70% of the relevant figure of “trading profit”, provided that the 70% figure did not exceed £6,570.
As to the total amount receivable for the third three month period (1 November 2020-31 January 2021, the 3rd grant payment), it was 80% of the relevant figure of "trading profit" - see the page below about that third period.
As to the total amount receivable for the fourth three month period (1 February to 30 April 2021, the 4th grant payment) it is 80% of the relevant figure of "trading profit" - see the page below about that fourth period. Please also see the page below as to the 5th grant payment.
We have set out some worked examples below. Please note carefully that they were produced only to show how grant payments for the first period (up to 31 May 2020) would have been calculated. Note that these examples do not also relate to any of the subsequent periods, except as follows.
For the second three month period (June to August 2020), the examples can also serve as illustrations if figures in them are replaced as necessary to take account of the reduction of "80%" to "70%" and "£7,500" to "£6,570" for that second three month period.
In each of the examples, it is assumed that the only income was as stated, and that the individual had been trading in, and had profits accruing for, the three most recent tax years. If they did not have three years of profits, the calculations would instead have had to be based on the alternative basis outlined in the above page as to “trade profit”.
As to calculating amounts of grants payable for any period beginning on or after 1 November 2020, see the page below covering the later periods.
You should seek advice/clarification from HMRC and/or a professional adviser in all cases to work out your eligibility for SEISS for any of the 1st to 5th grant payments and what your entitlement under SEISS was or will be, if any.
Examples: March-May 2020 grant period
Example A – Full claim
Trading profits: £18,000 (2016-17) + £25,000 (2017-18) + £35,000 (2018-19) =£78,000
Average profits per tax year: £78,000/3 = £26,000
Average profits per month of tax year: £26,000/12 = £2,167
Average profits for 3 months: £2,167 x 3 = £6,500
80% of that sum: £6,500 x 80% = £5,200
Since £5,200 is less than the maximum of £7,500, the trader will receive a total grant of £5,200.
Example B – Limited claim
Trading profits: £42,000 (2016-17) + £47,000 (2017-18) + £49,000 (2018-19) = £138,000
Average profits per tax year: £138,000/3 = £46,000
Average profits per month of tax year: £46,000/12 = £3,833
Average profits for 3 months: £3,833 x 3 = £11,500
80% of that sum: £11,500 x 80% = £9,200
Since £9,200 is more than the maximum of £7, 500, the trader will receive a total grant of only £7,500.
Example C – No claim
Trading profits: £52,000 (2016-17) + £49,000 (2017-18) + £51,000 (2018-19) = £152,000
Average profits per tax year: £152,000/3 = £50,666
Since the three year average of £50,666 and the 2018-9 figure of £51,000 are each more than the SEISS scheme cut off figure of £50,000, the trader is not eligible for any SEISS grant at all. Note that this goes further than merely limiting the trader’s claim to £7,500. It is actually a bar to any claim at all under SEISS.