What is the amount of "trade profit" for calculating what I will receive?

What is the amount of "trade profit" for calculating what I will receive?


The basic rule is that an eligible individual may receive a maximum of £2,500 per month for each of the three months of the scheme, i.e. a maximum aggregate of £7,500. However, the actual amount of an individual’s entitlement is to be calculated by applying the relevant rules set out in the scheme.

Those rules use an individual’s “trading profit” as the basis of calculation of the actual amount of entitlement. If that calculation produces a sum of less than £7,500, you will instead only receive that lesser sum. (For the purposes of SEISS, “trading profit” for a year means, in broad terms, trading income less the usual tax deductible expenses.)

The rules for calculating an individual’s “trading profit” for the purpose of SEISS are as follows. If you carried on your trade in the tax year 2018-19, but not also in the tax year 2017-8, your “trading profit” for SEISS purposes will be your trading profit for tax year 2018-9. Alternatively, if you carried on your trade in the tax years 2016-17, 2017-18 and 2018-19, your “trading profit” for SEISS purposes will be the average of your “trading profits” for those three tax years. However, if you carried on your trade in the tax years 2017-18 and 2018-19 but not in tax year 2016-17, your “trading profit” for SEISS purposes will be the average of your “trading profits” for those two tax years. 

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