HMRC has published further guidance on the SEISS, including details of how to work out total income and trading profits. There is also more detail on how to make a claim, eligibility and the interaction between the scheme and universal credit, as well as additional support on how to calculate profits and total income.
HMRC has said that an online service for claims will be available from early June and that it will contact those it thinks are eligible by mid-May.
HMRC will assess eligibility for the grant based on total income and trading profits.
Trading profits
HMRC will use the figures on tax returns for total trading income (turnover), then deduct any allowable business expenses and capital expenditure.
Allowable expenses include:
- office costs, for example stationery or phone bills
- travel costs, for example fuel, parking, train or bus fares
- clothing expenses, for example uniforms
- staff costs, for example salaries or subcontractor costs
- things you buy to sell on, for example stock or raw materials
- financial costs, for example insurance or bank charges
- costs of your business premises, for example heating, lighting, business rates
- advertising or marketing, for example website costs
- training courses related to the business, for example refresher courses
It also includes:
- any business expenses deducted through the trading allowance
- capital allowances, used to buy assets used in the business
- qualifying care relief
- flat rate expenses
HMRC will not deduct from trading profits:
- any losses carried forward from previous years
- an individual’s personal allowance