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Discussion Starter · #1 ·
Hi,

With regards to the self-employment income, is the "Gross Income" the Profit Before Tax or is it the Turnover?

Turnover: 22k
Expense: 3k
Profit Before Tax (Turnover - Expense): 19k
Profit After Tax: :confused:

Thank you!
 

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Discussion Starter · #2 ·
This is the following quote from the Appendix FM 1.7 but I don't follow understand the bit in the bold.
(b) Where the self-employed person is a sole trader or is in a partnership or franchise
agreement, the income will be:
(i) the gross taxable profits from their share of the business; and
(ii) allowances or deductable expenses which are not taxed will not be counted towards
income.
 

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profit before tax. internet says: "Taxable income, generally speaking, is the gross income of an individual or corporation, less any allowable tax deductions. Your taxable income is, in other words, the amount of your income that is subject to income tax."

and the deductable expenses means for example office rent, phone bill... the kind of costs you can deduct before paying tax.
 
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