Calculation of expected income10
1
An employed person's expected income comprises the amount of earnings the person expects to receive from—
a
any employment under a contract of service;
b
any office, including an elected officeF3;
F1c
an engagement in relation to which any of Chapters 7 to 10 of Part 2 of ITEPA 2003 applies (which relate to agency workers, workers under arrangements made by intermediaries and workers providing services through managed service companies).
2
In paragraph (1), “earnings” has the meaning given by section 62 of ITEPA 2003 M1 (general definition of earnings).
3
A self-employed person's expected income comprises—
a
the amount of receipts the person expects to derive from a trade, profession or vocation less the amount of expenses the person expects to incur wholly and exclusively for the purposes of the trade, profession or vocation; or
b
if the person carries on a trade, profession or vocation in a business partnership, the share expected to be allocated to the person of the partnership's receipts less the share expected to be allocated to that person of the partnership's expenses incurred wholly and exclusively for the purposes of the trade, profession or vocation.
4
In calculating a self-employed person's income, receipts and expenses of a capital nature are to be disregarded.
F25
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