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 first three months (March, April, and May) of the scheme, i.e. a maximum aggregate of £7,500 for the first three month period, and a maximum of £2,190 per month for each of the following three months (June, July and August) of the scheme, i.e. a maximum of £6,570 for the second period of three months.
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 lesser sum than, in relation to a claim for the first 3 month period, £7,500, or in relation to a claim for the second 3 month period, £6,570, you will instead only receive that lesser sum in each case. (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.