Where the assessment period is the period of the profit and loss
account (DMG32051
1) the decision maker must always base the calculation of
earnings from self-employment on
1) the gross receipts
relevant to that period
less
2) the allowable expenses
relevant to the same period. Allowable expenses include the
differences between opening and closing stock, where the opening
stock exceeds the closing stock.
The decision maker should not confuse this with receipts and
expenses paid out
during the assessment period (DMG33202).
