business income vs net profit

by **music_composer_** on Sat Jul 23, 2011 8:20 pm

hi, I am filing a self-assessment; in the part 'Net profit or loss' , there is written :

(enter) net profit - if your business income is more than your expenses

or, (enter) net loss- if your expenses exceed your business income

but business income, I think , can't be the same thing as turnover, since I have entered £ 15953 as turnover, and £ 8500 as allowable expenses, therefore, the net profit is about £ 7550

I have googled 'business income' and didn't find it's definition, so what it is meant by business income?

Thanks

by **AvocadoK** on Sat Jul 23, 2011 8:29 pm

In this context, business income means turnover.

If you are completing the paper form, have a look at the box where you entered turnover (box 8 I think) - you will see that above it appear the words "Business Income"

AK

by **music_composer_** on Sat Jul 23, 2011 8:33 pm

hi, I am completing the online form. Quite strange how in the form the same thing is called two ways, but thanks

by **AvocadoK** on Sat Jul 23, 2011 8:42 pm

Hi
There is a green question mark after the word 'income.' If you click on it, you will find that HMRC say that business income means turnover plus any other income (i.e. the total of the two boxes above).
AK