The method to calculate earnings from self-employment is used for both NE/NWE and AE (actual earnings/able to earn). There are multiple methods to calculate earnings from self-employment and discretion should be used to pick the method that best represents the person’s earnings. The same method should be used to calculate both the person’s NE/NWE and the person’s AE. See section 8.6.
Any income the person may be receiving purely from the application of their capital, i.e. bank interest, purchase of an 'allocated pension', interest from a managed investment fund, capital gains from property etc. cannot be included in the calculation of NE/NWE (or AE). Only taxable income which can be attributed to the client's mental or physical labour can be considered.