SEISS FIFTH GRANT TURNOVER CALCULATION

The details on how to calculate how much your turnover has been affected have now been released.  If you are eligible for the self-employed grant you will need to do this calculation before making a claim as it affects how much the grant is.  The claims service is open from late July, but you have until 30 September to make your claim.

You first need to work out your turnover for a 12 months period from April 2020 to April 2021.  The most common and easiest period to look at will be 1/4/2020 to 31/3/2021, but if your accounting period already runs in line with the tax year it will be 6/4/20 to 5/4/2021.  Turnover includes takings, fees, sales or money earned or received by your business, but not any SEISS grants or local authority grants received.  If you have more than one business, you will need to include all of them in your calculations.

This turnover figure needs to be compared to the turnover reported on your 2019/20 tax return (unless this was not a normal year).  You can find this on the return we sent you for approval or on the sole trader or partnership accounts prepared for including in your return.  These accounts may not be “April to April” as the turnover calculated above because your accounting period may be different (eg may be 31/7/19 year end), however these are what is included on your tax return and what you should use to compare.

If you are looking on your tax return, you will need to look at one or more of the following boxes on the various sections, if applicable

  • SA200 it is box 3.6
  • SA103S it is box 9
  • SA103F it is box 15
  • SA800 it is box 3.24 or 3.29 (for partnerships)

You then need to calculate if your turnover has decreased by 30% or more, or if it has decreased by less than 30%.

If your turnover is down by 30% or more

Your grant will be worked out at 80% of 3 months’ average trading profits (capped at £7,500).

If your turnover is down by less than 30%

Your grant will be worked out at 30% of 3 months’ average trading profits (capped at £2,850).

Note that there is no mention of not being eligible if your turnover has increased.  It appears that if you have previously been eligible, you intend to keep trading and you reasonably believe there will be a significant reduction in your trading profits due to the impact of COVID-19 between 1 May 2021 and 30 September 2021 you will be eligible for the 30% grant.

The full government guidance is here but we recognise that it may well be difficult to obtain the information and calculate your turnover.  If you are unsure, please do not hesitate to contact your tax manager or contact partner, who will be able to help and advise.  Alternatively you can email your query to consult@barlow-andrews.co.uk and it will be passed to the most appropriate person.