31.10.5 Earnings from Self-employment

Guidance re: income from self employment is at 32.3.5 (same as for AE)

Establishing the level of Normal Weekly Earnings or the Ability to Earn in Suitable employment of a self-employed client, presents particular difficulties. However the same principles can be followed in assessing both NWE and AE for both full-time and Reserve clients.

Therefore, read the discussion at 32.3.5 which is about establishing the client's 'AE' in self-employment. The issues and procedures for determining AE (post-injury ability to earn) in self-employment are the same as for establishing NWE (i.e. the pre-injury ability to earn) in self-employment.

Note it is the methods for ascertaining self employed earnings which are the same, it is not the nature or use of AE and NWE which is the same.

Unearned income is not to be included in NWE

Note that what is required is to establish the amount of net taxable income which can be attributed to the client's mental or physical labour. No account is to be taken of any income the client may be receiving purely from the application of the client's capital, i.e. bank interest, purchase of an 'allocated pension', interest from a managed investment fund, capital gains from property etc.