Personal income

Personal income forms the basis for calculating pension credits, national insurance contributions and surtax. Personal income must not be calculated for the owner of a sole proprietorship, regardless of whether or not the owner is actively involved in the running of the business. This is particularly relevant for people who run a family day care centre as a self-employed business in their own home The personal income is calculated from the general income from the enterprise.

If you are covered by the rules concerning calculated personal income, you must remember to complete "Personal income from sole proprietorship" (RF-1224). You will find the tax return with pre-completed information and all enclosures, including RF-1224, in your task list at You must submit the form together with the Tax return for self-employed persons, etc. (RF-1030) before May 31 the year after the income year.

If you run a family day care centre in your own home, the calculated personal income must be entered under item 1.6.1 of the Tax return for self-employed persons (RF-1030). This is important in order to ensure that you pay employer's national insurance contributions at the intermediate rate - currently 8.2 percent - rather than the high rate, which otherwise applies to self-employed persons.

The rules concerning personal income are not explained in more detail in this brochure. Contact the tax office for more information. See also "Guidance for RF-1224 Personal income from sole proprietorships" (RF-1225).

National insurance entitlements

You will normally be entitled to sickness benefit if you fall ill. The NAV office will be able to provide more information on the rules that apply.