Self Employed (Gross or Net Income)

[Itiswell]

Dear Helpers

Thanks for your great help to people like me. Kindly clarity if UKBA consider gross or net income for self employed. I friend said is gross but I think is net and I couldn't find any clear info from the UKBA site.

Your help will be greatly appreciated as I will be applying for ILR in May.

Thanks

[Lucapooka]

Revenue less expenses, before that sum is taxed.

[Itiswell]

Hello Lucapooka,

Thanks.
Example: Say I earned £40000 and my expenses is £3500
£40000 - £3500 = £36500
Does this mean UKBA will consider the £36500?

Your kindly explanation.

[John]

Yes

[Itiswell]

Thanks Lucapooka and John,

I really do appreciate your help.

Any idea on documents to provide apart from Personal bank statement and accountant letter?

Secondly, does UKBA consider other money inflow on your bank account, like company dividend?

I receive dividend from limited company but my self employed income will make £35000 after expenses, so considering using only self employed income. Any take on this please!

Thanks guys.

[Perdesi007]

Dear Helpers

Thanks for your great help to people like me. Kindly clarity if UKBA consider gross or net income for self employed. I friend said is gross but I think is net and I couldn't find any clear info from the UKBA site.

Your help will be greatly appreciated as I will be applying for ILR in May.

Thanks

If You are Self-Employed: UKBA will consider the Net Income

If you are Employed: UKBA will consider the Gross Income

I hope this clears the things

[Itiswell]

Hello Perdesi007,

Thanks. This is getting confusing. Two earlier helpers said gross minus expenses but before tax and now you talking about Net for self employed.

Dont know what part to take now. With Gross am fine but if Net then there is trouble.

Any one with self employed experience to help please.

Thanks

[Lucapooka]

Ignore the post from Perdesi. It's less than helpful. You already have your answer.

[Itiswell]

Hello Lucapooka,

Thanks. Is it possible to point me to UKBA documentation that says Net income for self Employed.

Thanks

[Lucapooka]

You, and it seems others, are confusing net profit with net income. Net income is income after tax; net profit is revenue less expenses, and before that sum is taxed. Self-employed income with regard to Tier 1 is taken as net profit.

Why don't you talk to your accountant rather than worrying about potentially-incorrect comments on an anonymous bulletin board?