Hi, sorry - we're still not 100% certain about this.
For example, if the Tax Calculation for 2012/13 reads (I am writing it in the template from last year's tax calculation - I assume this is what it would read):
Tax Calculation for 2012/13
Income received (before tax taken off)
Profit from self-employment: £18,600
Total income received: £18,600
*minus Personal Allowance*: £8,105
Total income on which tax is due: £10,495
How I have worked out your Income Tax
Total income on which tax has been charged: £10,495
Income Tax due: £?
See? We are worried that even showing a "profit" of £18,600 (brought down from the full £40,000 by deducting business expenses) makes it look like we only paid tax on £10,495 because of the Personal Allowance of £8,105!
It does say in the UKBA's Statement of Intent: Family Migration:
"73. The Migration Advisory Committee recommended that the minimum gross annual income for sponsoring a partner, without dependants, should be set at between £18,600 (the level at which in most cases a couple receive no income-related benefits) and £25,700 (the level at which the sponsor is a net contributor to the public finances)."
As this document was written last year, that £25,700 figure would probably be updated as £26,705 (since the new tax-free Personal Allowance for 2012/13 went up to £8,105).
Anyway, can you please comment on whether you are 100% certain that based on the above Tax Calculation template, we would definitely qualify as meeting the Financial Requirement? Otherwise, my initial point was correct and we WILL have to show a gross profit (post-expenses but pre-tax) of £26,705 and not £18,600 as you suggested.