Self Employed Retained Profits refer to the portion of a self-employed individual’s earnings that are not distributed as dividends or wages, but are instead retained in the business. This retained profit can be used for various purposes, such as reinvesting in the business, paying down debt, or accumulating a cash reserve for future expenses. Retained profits can be an important source of funding for self-employed individuals, particularly during times of economic uncertainty or when seeking to expand their business. However, the decision to retain profits rather than distributing them can also have implications for tax planning and other financial considerations, such as determining the optimal level of business income to draw as wages or dividends.