The UK's largest and most visited divorce site.
Modern, convenient and affordable services.
We've helped over 1 million people since 2007.

Click this button for details of our

email, phone nbr and free consultations.

How To Contact Us

Read our latest Financial Settlements guide (2021)

What are we each entitled to in our divorce settlement?

What does the law say about how to split the house, how to share pensions and other assets, and how much maintenance is payable.

What steps can we take to reach a fair agreement?

The four basic steps to reaching an agreement on divorce finances are: disclosure, getting advice, negotiating and implementing a Consent Order.

What is a Consent Order and why do we need one?

A Consent Order is a legally binding document that finalises a divorcing couple's agreement on property, pensions and other assets.

Self Employed Net Income for consent order

Start
Prev
1
Next
End

Wikidivdad1
Posted by
New Member

19 Dec 22 #520306 by Wikidivdad1

Topic started by Wikidivdad1

Hello,
I am currently trying to come to an agreement for a Consent Order and I am trying to work out what my net income is.
I am self employed and submit a tax return each year myself, but do not use an accountant.
Do I use the figures generated by the HMRC as my net income. ie Income, minus allowable expenses, minus Tax and NI?
My ex is trying to say that the Allowable Expenses, which I believe reduce my tax bill, should be added to my income, therefore increasing the average monthly amount I earn, to input into the Calculator.
Can anyone confirm what figures I should be using please?
Thanks

WYSPECIAL
Moderator

21 Dec 22 #520309 by WYSPECIAL

Reply from WYSPECIAL

You are correct, use the figure that is calculated byHMRC.

However you don't mention pension contributions. If you pay into a private scheme yourself from your taxed income then you need to deduct these from the HMRC figure.

Start
Prev
1
Next
End

Moderators: wikivorce team, rubytuesday, dukey, hadenoughnow, Tets, Shezi, Linda Sheridan, Forseti, Mitchum, WhiteRose, Lostboy67, WYSPECIAL, Bubblegum11

Do you need help sorting out a fair financial settlement?

Our consultant service offers expert advice and support to help you reach agreement on a fair financial settlement quickly, and for less than a quarter of the cost of using a traditional high street solicitor.