How we work out your income and expenses
How we work out your income and expenses
Firstly we work out the total business income for the period in question. This will include all money coming in and business start-up allowances, but will not include sums of capital paid into the business.
We then consider the expenses you have incurred. We cannot deduct any sums for depreciation, business entertaining or capital repayments on loans.
If you are part of a partnership, only your share of the business takings will be counted as income.
Tax and National Insurance
We will calculate income tax and national insurance deductions ourselves based on the net profit of your business. These figures may differ from the amounts worked out by the HM Revenues and Customs, so we cannot accept tax returns as evidence. We also allow half of any private pension contributions you pay. All the above are deducted from your net profit figure to give us the earnings amount to be used to calculate how much housing and council tax benefit you are entitled to.