HMRC updated their guidance 4 May to outline the process for applying for SEISS.
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The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether.
You will get a taxable grant based on your average trading profit over the 3 tax years:
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then they will divide by 3.
The grant will be 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. The online service will tell you how HMRC have worked the grant out.
The grant amount HMRC work out for you will be paid directly into your bank account, in one instalment.
Find out how HMRC will work out your average trading profits including if you have not traded for all 3 years here: https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme#threeyears
If you receive the grant you can continue to work, start a new trade, or take on other employment including voluntary work, or duties as an armed forces reservist.
The grant will be subject to Income Tax and self-employed National Insurance.
There is other support available if you are not eligible for the grant.
HMRC will work out if you are eligible and how much grant you may get.
Check if you are eligible to claim
HMRC have an online eligibility checker which links from their web page: https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference