SEISS calculation

Jasperparrot

I've just received my SEISS calculation based on my last three years tax returns. However, I registered as self employed about 2 weeks prior to the end of the 2016/17 tax tear therefore as I had only just started up my 2016/17 return was for a mere £265. This £265 has been used to average out the three years returns, as per the rules, but it reduces the benefit significantly. Is it worth appealing and asking for the average to be based on the last two full years or should I just be grateful that I've got something coming in ? Thanks for any responses received

Jeremy535897

You can always ask, but the rules are clear that 2016/17 is included as a full year. We don't know what, if any, discretion they have on appeals.

bobbooo

Jasperparrot said:

I've just received my SEISS calculation based on my last three years tax returns. However, I registered as self employed about 2 weeks prior to the end of the 2016/17 tax tear therefore as I had only just started up my 2016/17 return was for a mere £265. This £265 has been used to average out the three years returns, as per the rules, but it reduces the benefit significantly. Is it worth appealing and asking for the average to be based on the last two full years or should I just be grateful that I've got something coming in ? Thanks for any responses received

Appeal. The government originally promised 80% of average monthly profits. If you're receiving less than that due to flaws in their scheme caused by averaging over partial first year profits, they need to rectify this. Your start date should be clearly written on your tax return to prove this, so they have no excuse not to adjust your payment by either only averaging over the second two years, or taking the median yearly profit instead of the mean (the latter they should have done for everyone from the beginning to avoid unfair situations that you and many others are now experiencing.)

Jasperparrot

Thanks for the replies received so far. I’ve stuck an appeal in so we’ll see what happens. The actual date I registered as self employed was 17/3/17 so only 19 days (even less working days) prior to the end of the tax year end. 

bobbooo

Jasperparrot said:

Thanks for the replies received so far. I’ve stuck an appeal in so we’ll see what happens. The actual date I registered as self employed was 17/3/17 so only 19 days (even less working days) prior to the end of the tax year end. 

Keep us updated on any response you receive.

Semple

About a quarter of the threads on the first page or 2 are people running into the same issue. I'm sure HMRC will be fully aware of the issue now, and will just mean waiting to decide if they change their guidance. 

RMTG1

Hi First time posting so hopefully someone can help.  I applied online for my SEISS and thankfully received some money a lot less than I was expecting/need.  My situation is that I was both employed and self- employed in 2016-17 and 2017-18 and only fully self employed in 2018-19.  The amounts I put through SA in 16-17 was only approximately 20% of my total earnings, just under 30% in 17-18 and 100% in 18-19.  The calculation has taken all 3 of these amounts into account and reduced the amount massively.  I thought it would only use my 2018-19 calculation as this is a fairer representation of my income and have raised a query.  Does anyone have any information that could help.

Jeremy535897

The calculation is correct. They average your self employment trading income over the three years 2016/17, 2017/18 and 2018/19 if you were trading in those three years, no matter how little yo made, and no matter what your other taxable income was. Other taxable income is only relevant in establishing whether you qualified for any grant at all.

CeSeraSera

I am in the same boat. Traded 17/18, 18/19 but not 16/17 so I have disputed their decision and I advise you to do the same. The calculations seem to be automated, however their guidance does state that if you trade 2 out of 3 years then the average is taken from 2 year, which they have not followed through on. To quote their guidance notes: 

If you did not trade in the tax year 2017 to 2018

We will work out your average trading profit based on the tax year 2018 to 2019 only, even if you traded in the tax year 2016 to 2017.

Example

	2016 to 2017	2017 to 2018	2018 to 2019	Trading profit
Trading profit or loss	£25,000	Did not trade	£45,000	£45,000

ad_man

Okay here's one on SEISS calculations : self employed via two unrelated businesses. One business ‘A’ makes a trading profit of £20k and to make things simple has made that same trading profit amount for the last 3 tax years. And importantly it is also the amount that has been taxed on less personal allowance. The other business ‘B’ that has only been trading the last 2 tax years makes a £4k loss first year and £2k loss the second year. In terms of the SEISS grant rather than base the trading profit on the TAXED £20k profit average over the last 3 years HMRC instead subtracts the trading loss amount from business B over those 2 tax years. The average per year is now down to £18k to equal a lower grant payment.

Is that a fair way to calculate the grant payment bearing in mind tax was paid on £20k trading profit for each of the previous 3 tax years? I believe not.

Jeremy535897

CeSeraSera said:

I am in the same boat. Traded 17/18, 18/19 but not 16/17 so I have disputed their decision and I advise you to do the same. The calculations seem to be automated, however their guidance does state that if you trade 2 out of 3 years then the average is taken from 2 year, which they have not followed through on. To quote their guidance notes: 

If you did not trade in the tax year 2017 to 2018

We will work out your average trading profit based on the tax year 2018 to 2019 only, even if you traded in the tax year 2016 to 2017.

Example

	2016 to 2017	2017 to 2018	2018 to 2019	Trading profit
Trading profit or loss	£25,000	Did not trade	£45,000	£45,000

You picked the wrong example. That example bases the grant only on 2018/19. Your situation should base it on 2017/18 and 2018/19, as you say, so you need to appeal if that is not what has happened.