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:

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