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Tier-1 General to ILR: meaning of NET profit

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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jhleelondon
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Posts: 1
Joined: Wed Mar 25, 2015 3:09 pm

Tier-1 General to ILR: meaning of NET profit

Post by jhleelondon » Wed Mar 25, 2015 3:15 pm

Hi, I am applying for ILR this year. I have a question about the meaning of NET profit.

Previous Earning
I plant to provide evidence for mixture of salaried employment and Limited Company business activity.

I am the sole director of my Limited Company and I retain 100% of the company's profit. I would like to ask the meaning of NET profit for my Limited Company business activity.

My question is

a) is NET profit means Gross Profit(before tax)-expenses
OR
b) Gross Profit-expenses-Corporate Tax

Which is correct?

I am not giving myself a salary, I just take all the earning to myself.

honey2008
Member
Posts: 152
Joined: Fri Aug 29, 2014 7:36 pm
United Kingdom

Re: Tier-1 General to ILR: meaning of NET profit

Post by honey2008 » Thu Mar 26, 2015 8:16 pm

Gross Profit=Income - Expenses
Net Profit=Gross Profit - Corporation Tax

Net Profit can be distributed among share holder as Dividends.

Hope this helps BUT I would recommend you to consult professional accountant for your paperwork

Ta
Honey

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