What is the amount of "trade profit" for calculating what I will receive?
The basic rule for the periods of grant covering up to 31 August 2020 was that an individual could receive up to £2,500 per month for each of March, April, and May 2020 (in aggregate up to £7,500 for the 1st grant payment), and up to £2,190 per month for each of June, July and August 2020 (in aggregate up to £6,570 for the 2nd grant payment).
The amounts payable for the extension periods 1 November 2020 to 31 January 2021 (3rd grant payment) and 1 February to 30 April 2021 (4th grant payment) are calculated differently - see below. There is a maximum total cap on the 3rd and 4th grant payments for each of the periods November 2020-January 2021 and February-April 2021 of £7,500.
However, the actual amount of an individual’s entitlement for any given period is to be calculated by applying the relevant rules set out in the scheme in relation to the particular period concerned.
The rules use an individual’s “trading profit” as the basis of calculation of the actual amount of entitlement. For the purposes of SEISS, “trading profit” means, in broad terms, trading income less the usual tax deductible expenses. In relation to a grant claim for a particular period covered by SEISS, if you carried on your trade in only one relevant tax year, your “trading profit” will be your trading profit for that tax year but if you carried on your trade in two or more relevant tax years, your “trading profit” will be the average of your trading profits for those tax years.
As to the 3rd, 4th and 5th grant payments, see the pages below about calculation of the amount of the entitlement in each case.