Reply To: Self employed prisoner.



Thanks for that, it was more or less the take I had on it to start with but…
The devil is in the detail.

If the claimant is not self employed, the business must be some form of a capital asset. So,

Q1 is does the income arise from this assett? Although she must have ceased trading she made no attempt to dispose of it hence no disregard & tariff income has to be used? If so, do I use the book value or capitalise the annual income (which I think would be more sensible on this occassion)


If, on the other hand, the income does not arise from the capital when does it become hers?

If I use the “Takings” figure (the sum total of monies received by the business) this includes a substantial payment of capital introduced into the business – I would assume that this would be disregarded?

Or I could use the gross profit figure or even the net profit?

Just found out that partner is a PFA – I was toying with the idea of treating him as an owner in substance if not form but no longer an issue.

I do not think illegal income is a question, all her hydroponics gear was confiscated when she was arrested!