Self-employed people’s gross earnings are worked out as the gross profit of the business less certain allowable expenses.
Allowable expenses include:
They don’t include:
Any losses you make during the period you are receiving benefits will be counted as nil income.
You can enter your gross self-employed earnings (less the amounts shown on your accounts for allowable expenses) and let the calculator work out your net self-employed earnings automatically. Alternatively you can directly enter your net self-employed earnings.
For tax credits, if your self-employed earnings are lower than the national minimum wage multiplied by the hours you have said you work, HMRC may carry out checks on your self employed activity. See our Gainful Self-employment page for further details.