Gross earnings self-employed : Free Benefits Check from Entitledto

Self-employed people’s gross earnings are worked out as the gross profit of the business less certain allowable expenses.

Allowable expenses include:

repayments of capital on loans used to replace or repair equipment needed for the business
the cost of replacing or repairing equipment needed for the business
Interest paid on business loans
VAT paid in excess of VAT received
expenses paid for the purposes of the business
bad debts that have been defaulted on.

They don’t include:

money spent on new equipment or to set up or expand the business
amounts for depreciation or write-offs
domestic or personal expenses not essential to the business
money spent on business entertainments or meals

Any losses you make during the period he or she is receiving HB/CTB will be counted as nil income.

Enter your gross self-employed earnings less the amounts shown on your accounts for allowable expenses. The calculator will work out your net earnings automatically.