Warunee79 Posted July 2, 2016 Posted July 2, 2016 (edited) Self employed- Is the financial requirement £18,600 based on the figure Net profit ? (After allowable expenses) Or after Annual investment allowance (AIA) also =Net profit for tax purposes? On my tax return figures I have 2 figures that reduce the tax I will pay, total allowable expenses and annual investment allowance which dramatically lowers the Net profit for tax purposes. Edited July 2, 2016 by Warunee79
7by7 Posted July 2, 2016 Posted July 2, 2016 In your other topic I advised you to read the financial requirement appendix; from what you say part 9. Self-employment or Director of a specified limited company in the UK is relevant to you.See also the relevant to you parts of Appendix FM-SEThere are various types of self employment, and how the income is calculated and the evidence required varies according to type. For example: 9.5.3. Appendix FM-SE specifies further requirements for self-employment income:19. When calculating income from self-employment under paragraphs 12A and 13(e)… this paragraph applies: ( b ) Where the self-employed person is a sole trader or is in a partnership or franchise agreement, the income will be:(i) the gross taxable profits from their share of the business; and(ii) allowances or deductable expenses which are not taxed will not be counted towards income. I strongly advise you to read both appendices carefully; paying particular attention to the parts specifying the evidence your are required to submit; which is more complicated for the self employed than it is for the employed. Miss out a piece of required evidence and the application will almost certainly be refused.
Warunee79 Posted July 2, 2016 Author Posted July 2, 2016 Thank you very much, I have got the information from your link now.! Much appreciated
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