The total amount receivable for the three month period 1 March to 31 May 2020 will be 80% of the relevant figure of “trading profit”, provided that the 80% figure does not exceed £7,500. The total amount receivable for the second three month period 1 June to 31 August 2020 will be 70% of the relevant figure of “trading profit”, provided that the 70% figure does not exceed £6,570.
As to the extension of the scheme for the period 1 November 2020 to 30 April 2021, the percentage of the relevant figure of "trading profit" for 1 November 2020 to 31 January 2021 will be 80% - see the page below about that extension period. The percentage for 1 February to 30 April 2021 has not yet been fixed.
We have set out some worked examples below for the initial periods up to 31 August 2020. In each case, it is assumed that you have no income other than as stated in the examples, and that you have been trading in, and have profits accruing for, the three most recent tax years. If you do not have three years of profits, calculations will instead need to be based on the alternative basis outlined in the above page as to “trade profit”.
The following examples are not in any way exhaustive. They are meant only as illustrations, and they cannot serve as guidance for any case. They are all examples of operation of SEISS during the first three month period (March to May 2020), and they show the amount of the grant payable for that period only. To use the same examples to show the amount of grant payable for the second three month period (June to August 2020), you will need to replace figures as necessary in each case to take account of the reduction of "80%" to "70%" and "£7,500" to "£6,570" for the second three month period. As to calculating amounts of grant payable for any period beginning on or after 1 November 2020, see the page below covering that later period.
You should seek advice/clarification from HMRC and/or a professional adviser in all cases to work out whether you are eligible and what, if any, entitlement you have under SEISS.
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.