seeking clarification about net & gross self employed in

[Vamiq.khan]

Dear ALL,

I am working as a free lancer and money I have received is £15000 in 12 months in addition to pay employed wages which are 20K. I need to know as what points will I be awarded for above given income. I am not clear of a rule which apparently stated that income generated from self employment will be considered as your net income after deducting money devoted to your expenses. I am not clear as what expenses it is referring to . And what is actual net income could be in the case of my £15000.

Hope this is clear. Raise question if not and add answer to my post.

many thnx
Vamiq

[geriatrix]

Read the Tier 1 (General) policy guidance *carefully*.

regards

[Perdesi007]

Dear ALL,

I am working as a free lancer and money I have received is £15000 in 12 months in addition to pay employed wages which are 20K. I need to know as what points will I be awarded for above given income. I am not clear of a rule which apparently stated that income generated from self employment will be considered as your net income after deducting money devoted to your expenses. I am not clear as what expenses it is referring to . And what is actual net income could be in the case of my £15000.

Hope this is clear. Raise question if not and add answer to my post.

many thnx
Vamiq

these expenses can be in terms of your accommodation, travel expenses, and utility bills etc if you want to claim. You can only claim upto 25% of total expenses. If you have earned 15000 in a year and 25% of your earned amount is: 3750.

Gross Income - Expenses = Net income

15000 - 3750 = 11250

Note: It's not necessary to claim 25% in total, you can claim any thing less than that. i,e. 5%, 10%, 15% or 20%. Check with your accountant for more specific information as points will be awarded on net income.

[Vamiq.khan]

Perdesi

Mate if I don't wanna claim any % of expenses. But my expenses appearing in my bank statement where I get paid from my employer and self employment. I do not want to show any expenses and claim points for exact £15k Does it effect the outcome of my application. I am need to show £15000 to score what I lack on the top of my other income . Let me know if you have any suggestion in regards to this.

Thnx and Regards
Vamiq

[Perdesi007]

Perdesi

Mate if I don't wanna claim any % of expenses. But my expenses appearing in my bank statement where I get paid from my employer and self employment. I do not want to show any expenses and claim points for exact £15k Does it effect the outcome of my application. I am need to show £15000 to score what I lack on the top of my other income . Let me know if you have any suggestion in regards to this.

Thnx and Regards
Vamiq

Vamiq,
It's entirely upto you whether you want to claim any expenses or not. But normally in self-employment you have to show expenses. If you don't want to claim any expenses at all then your accountant will not add them in accounts. All you have to do is justify it if they ask you about your expenses. i.e. you can say I do not pay any rent as I live with my family or family friends and i don't have to pay any rent. I do not pay any utility bills (electricity, gas , telephone, transport and internet etc). You could also say transport expenses are always paid by your employer. If you can justify all of the above, then in my opinion you can show whole amount. But do discuss it with your account well in time, he may give you some better idea and also I'd request seniors in this forum to come forward and reply to above questions asked by VAMIQ