I’m applying for a spouse visa under category F — self-employed income as a sole trader, however this line in Appendix FM 1.7 just punched me in the face:
Specifically the the part about deductible allowances.Where the self-employed person is a sole trader or is in a partnership or franchise agreement, the income will be the gross taxable profits from their share of the business in the relevant financial year(s), not including any deductable allowances, expenses or liabilities which may be applied to the gross taxable profits to establish the final tax liability.
I use two allowances in my tax return the “personal allowance” of £12,500 and the “Rent a room scheme” allowance of £7500.
If I deduct these two amounts from my gross profit, or even just one of them I will be well below the pre-tax £18,600 threshold needed to pass the financial requirements.
Am I reading this wrong, or do they mean a different type of allowance that I’m totally ignorant of?
Thank you for reading this.