Many thanks for your reply.
I appreciate your response that as long as the tax paid under the tax management scheme, one shouldn't worry. However, I have seen a few cases when UKBA has refused cases where applicant declared the income and later on paid less tax by showing increased expenses.
My tax is paid full on 80% of declared net income but since 20% of remaining income fell into next year bracket and furthermore there wasn't any business activity done later on that year caused expenses to eat all the profit thus reducing tax liability to £144.40
I have confirmed with accountant, according to him its a normal, legal practice. But I would like your input on this as you may have seen such cases being refused.
You have also mentioned I do not need to attach eBay (Paypal) and Amazon statements but on page 48 of the guidance you sent states regarding self employed people that:
"Where an applicant is submitting a combination of bank statements and a letter/invoice summary from their accountant, they must also provide any invoices generated during the period for which earnings are being claimed"
As retailer I sell on these platforms and money is then processed by Amazon and Paypal, which eventually gets transferred to my bank account.
Now the issue is I can print statements with or without transactions, for reconciliation purposes, from paypal and amazon but would they hold any value in the eyes of UKBA?
or Can I really invoice amazon and eBay
or I should make thousands of invoices for each customer.
Did you have such experience in the past. where an online seller applied to UKBA and submitted statement print outs?