SEISS - 3 years average pay calculation

Xandermonn

I started as a s/e private hire driver on 06/08/2016. In calculating my SEISS, It seems that I have been penalised by HMRC as they have both reduced the taxable amount submitted for each of the 3 years and also counted my first year's submission that was based on 8 months trading as a full year's trading.  This has meant an overall reduction of around £650 on what I was expecting. This is particularly upsetting for me as, if another self employed person had a grant based on either my last 1 or 2 years assessments, they would receive a higher grant than I will, having paid far less tax/NI. The tax/NI  I paid was based on my submitted self assessment submissions, not the taxable amounts suggested by the HMRC calculations.  I've asked my accountant to have a look into this but I'm wondering whether anybody else is having similar issues. 

Jeremy535897

It's a very common complaint that part years are treated as full years in averaging profits. I am not sure what you mean by "reduced the taxable amount submitted for each of the 3 years"?

Xandermonn

Thanks for your msg Jeremy535897. These were my submitted self assessments compared to the figures that HMRC have used to calculate my grant:
                                  2016/17                    2017/18             2018/19
My s/e accounts       £12786 (8 mths)       £18710               £19723
HMRC Grant figs    £11025                       £17617               £18568
The HMRC figs are therefore £4009 less than my taxable earnings that I paid tax and NI on

Grumpy_chap

Could the variance be the difference between income (turnover) and profits?
The figure HMRC should use from box 21 on SA103s.  

whizzywoo

Grumpy_chap said:

Could the variance be the difference between income (turnover) and profits?
The figure HMRC should use from box 21 on SA103s.  

I thought it was Box 31 after Capital Allowances ?

Jeremy535897

This doesn't make sense. You should query it with them. Check the previous poster's point, but it doesn't feel right.

Grumpy_chap

whizzywoo said:

Grumpy_chap said:

Could the variance be the difference between income (turnover) and profits?
The figure HMRC should use from box 21 on SA103s.  

I thought it was Box 31 after Capital Allowances ?

Yes, @whizzywoo - you could be correct, box 31 not 21.  I apologise to all if I have caused confusion.  Either way, the OP should be able to see the figures that HMRC used as entries in the tax return page.

Jeremy535897

If the difference is expenses, they seem a very low percentage of turnover. Also why does OP think that tax and NI has been paid on his figures? There will be an explanation, but I don't think we have found it yet.

Xandermonn

Thank you all for your comments. The figures are all based on my taxable income after allowable expenses. I've asked my accountant to contact HMRC on my behalf iaw their SEISS instruction but so far I've not heard anything further.

Jeremy535897

Has your accountant said that the figures you quote are correct, and that HMRC's figures don't seem to relate to your tax returns?

Xandermonn

The figures I have quoted were the official taxable self assessment amounts advised to me in my accounts by my accountants for each year and subsequently submitted to HMRC