What is the "net profit" figure on the SA302

pulck74

This should be a simple question for someone knowledgeable!

I'm self-employed/sole-trader and applying online for a Nationwide loan. The application asks for my "Net profit before tax".

On the SA302, I'm assuming this is the same as the figure next to "Total income received". (i.e. NOT "Profit from self-employment" NOR "Total income on which tax is due").

Am I correct?

bris

Net profit is when all the business expenses are deducted and that's usually with tax included to give a true reflection of what you have left.

Not sure why they want a tax free figure but just deduct the tax you need to pay to HMRC and use that figure.

JGB1955

bris said:

Net profit is when all the business expenses are deducted and that's usually with tax included to give a true reflection of what you have left.

Not sure why they want a tax free figure but just deduct the tax you need to pay to HMRC and use that figure.

As I read it, they DON'T want a tax free figure - so the answer is net profit, ignoring any tax due.

pulck74

JGB1955 said:

bris said:

Net profit is when all the business expenses are deducted and that's usually with tax included to give a true reflection of what you have left.

Not sure why they want a tax free figure but just deduct the tax you need to pay to HMRC and use that figure.

As I read it, they DON'T want a tax free figure - so the answer is net profit, ignoring any tax due.

Thanks for the help.

Yes, it clearly states "net profit before tax" which is why I thought the "Total income received" figure was correct.

And haven't all figures on the SA302 already had business expenses deducted?

So basically "Total income received" is right, isn't it?

JGB1955

pulck74 said:

Thanks for the help.

Yes, it clearly states "net profit before tax" which is why I thought the "Total income received" figure was correct.

And haven't all figures on the SA302 already had business expenses deducted?

So basically "Total income received" is right, isn't it?

Presumably 'total income received' would be far higher than net profit before tax? Don't you have any expenses/purchases to set against income?

pulck74

JGB1955 said:

pulck74 said:

Thanks for the help.

Yes, it clearly states "net profit before tax" which is why I thought the "Total income received" figure was correct.

And haven't all figures on the SA302 already had business expenses deducted?

So basically "Total income received" is right, isn't it?

Presumably 'total income received' would be far higher than net profit before tax? Don't you have any expenses/purchases to set against income?

Yes, I do have expenses. But haven't they already been subtracted from the "total income received" figure? I was assuming the SA302 had already taken those out of the equation.