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13 December 2012

Form E: Section 2 parts 2.15 to 2.21 (income from employment, self-employment, investments, state benefits and any other sources, plus financial summaries)

Mahie Abey

This post follows on from Form E: Section 2 parts 2.9 to 2.14 (liabilities, CGT, business interests and directorships, pensions and other assets)and takes you through Section 2 parts 2.15 to 2.11, which cover income and then summarise your finances.  


Remember you will need to provide the appropriate documents for each of these sections – see Form E: the documents needed to accompany it.


Section 2.15 – earned income from employment

Fill in this page for each employment you have.




1.      Gross income for the last financial year as shown on your P60 – you will be given a P60 annually, usually in around May

2.      Net income for the last financial year – you need to deduct your tax and NI from the gross income. Both these figures are on your P60. The tax figure is obvious. For NI it is the employee’s NI figure you need to deduct (not the employer’s)

3.      Average net income for the last three months – they want your average monthly net income here, calculated over the last three months. 




4.      Other entries on the payslips – many payslips will show deductions other than tax and NI: these could include pension payments, union fees, health care payments etc. These will usually appear in some form of code and are not obvious to someone reading the payslip, though they will be to you. It is these deductions that you need to list and explain here

5.      Payslips are not an accurate reflection – examples of when this might be the case are because you have been working overtime, which is no longer available, that you are on a special contract that will not last, or that you receive a London weighting which will be deducted once you move back to your old job out of London etc

6.      Estimate of net income from this employment for the next 12 months – you should give your best guess of your net income from this job for the next 12 months: in most cases that may be your existing income with a small rise to reflect an inflation-based pay increase. If however you expect a promotion and pay rise you should list the increased amount here and explain why it is higher thans your current net income. Similarly, if you expect to earn less next year than this, give the estimated amount and explain why.

7.      Estimated total of all net earned income from employment for the next 12 months – the total of any figures entered in box. 6 above; if you are listing more than one employment then only fill this box in on the last page


Section 2.16 – income from self-employment or partnership

Generally speaking I think this section is one of the hardest sections to complete accurately because the information it asks for is not in one place and the answer that is asks for may not, for a variety of reasons, actually represent what you pay yourself.

My advice is to answer this section as requested and to explain the true position if necessary either in Section 4.5: Any other circumstances (see the post covering that section) or in Section 2.19: Any other income (later in this post).

I’d also recommend you complete this section of the form with your accountant if you have one. If you don’t have an accountant  then discuss it with your bookkeeper or the person who deals with your accounts. They will be able to help.

Remember that this section only applies if you are a sole trader or in a partnership.

Fill in this page for each sole trader or partnership income you have.



1.      Your share of gross business profit  – this figure will be obvious from your accounts and your tax return

2.      Income tax and NI payable – again, this information will be in your tax return

3.      Net income – this is gross income less tax and NI, i.e. box 1. minus box 2.

4.      Benefits in kind, perks or remuneration – examples of what you should list here are given in the question

5.      Amount of drawings – the amount of, and the way in which you take, drawings will differ from business to business. You might take a set monthly amount and then additional amounts quarterly or annually. Or you may take drawings as and when you need them, or at other times. Give as much information as you can here.



The next two questions appear on the form in the wrong order – I suggest you answer them in reverse!

6.      Your estimate your net annual income for the next 12 months - your best guess is needed here

7.      Estimated figure below different from last net income figure – if the figure you’ve given in 6. (for your net income for this 12 months) is significantly different to the figure you gave in 3. (for the last completed year) you’ll need to explain why.

8.      Estimated total of all net income from self-employment or partnership for the next 12 months – the total of any figures entered in box. 6 above; if you are listing more than one self-employment then only fill this box in on the last page


Section 2.17 – income from investments

This section only relates to what it says it covers: income from investments, such as dividends, interest or rental income.

If you receive dividends from your business don’t put them here, but in section 2.19 - Any other income (see later on in this post).  



1.      Nature of income and the assets it derived from – for example ‘Dividend income, British Telecom shares’ or ‘Rental income, 56 Western Road’ 

2.      Income received in the last financial year – income in the year that ended on the last 5th April

3.      Estimated income for the next 12 months – income in the year from the last 5th April

4.      Estimated total investment income for the next 12 months – the sum of all amounts entered in box 3


Section 2.18 – income from state benefits

You will know if you get these. Remember to add child benefit or state pension if you receive it.


1.      Name of benefit – obvious!

2.      Amount paid – again obvious!

3.      Frequency of payment – for example weekly, monthly

4.      Estimated income for the next 12 months – just work this out on the basis of a year’s worth of box 2 above, unless you happen to know what the annually increased amount will be

5.      The total of any sums entered in box 4. above


Section 2.19 – any other income

This section is for any other income you receive which you haven’t already listed – for example dividends from a limited company you own, pension income or spousal maintenance.

Note that you need to cover a 2 year period – any other income received in the last 12 months (not financial year this time!) and any other income you expect to receive in the next 12 months.




1.      Income received in the last financial year and estimated income for the next 12 months – note that you might be able to list figures for both for some income sources, but only one of the two for others


Sections 2.20 and 2.21 – financial summaries

These sections are a bit of a pain to fill in I’m afraid, and you will have to go back through the form to find the subtotals you have already entered.





1.      Subtotal A – you’ll find this at the end of section 2.1

2.      Subtotal B – you’ll find this at the end of section 2.2

3.      Subtotal C – you’ll find this at the end of section 2.8 (it’s the total of C1 to C6 inclusive, found at the bottom of section 2.3 to 2.8 inclusive)

4.      Subtotal D – you’ll find this at the end of section 2.10 (it’s the total of D1 and D2, found at the bottom of sections 2.9 and 2.10)

5.      Subtotal E – you’ll find this at the end of section 2.11

6.      Subtotal F – you’ll find this at the end of section 2.13

7.      Subtotal G – you’ll find this at the end of section 2.14

8.      Total value of your assets – as it says the total of A, B, C, E, F and G, minus D



9.      Subtotal H – you’ll find this at the end of section 2.15

10.   Subtotal I – you’ll find this at the end of section 2.16

11.   Subtotal J – you’ll find this at the end of section 2.17

12.   Subtotal K – you’ll find this at the end of section 2.18

13.   Subtotal L – you’ll find this at the end of section 2.19

14.   Estimated total income for the next 12 months – as it says the total of H, I, J, K and L

That’s the assets, liabilities and income parts of Form E dealt with!

In my next post we’ll move onto Section 3, which covers your financial requirements. (Of course if you're providing voluntary disclosure - i.e are outside of the Court process - you don't need to go through the lengthy process of filling in Form E at all: we suggest you use Intelligent Divorce instead!)