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CYI Student finance help

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Hello,
My son is going to Uni in Sept this year and we are going through the student finance application. There is a big difference between our household income for 2018-19 (£43,000) and 2019-20 (£27,000) Due to my husband going self employed  but all I can see is you can ask them to take the current year into account 2020-21...Why can we not use the 19-20 figure? It will be hard to predict this years income with COVID changing our working lives and at the end we might have had an over payment that needs to be paid back. Can they not use the 19-20 figure? 

I have (another) really silly question also, as an adult I should know this! 
They ask for ‘taxable income’ do I minus expenses from self employment and the tax free allowance- is that deducted too? 
Thank you for your help! 

Replies

  • sherambersheramber Forumite
    8.3K posts
    Sixth Anniversary 1,000 Posts Name Dropper
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    Them's the rules. 
     It is the income for 2018/19 unless  the current year is 15% less.
    Next year it will be 2019/20 income.

    The self employment figure is the amount of profit for tax in the tax calculation. 
     If , by tax free allowance , you mean the personal allowance then no, that is not deducted.
  • houseof6ohcirehouseof6ohcire Forumite
    2 posts
    First Post
    Thanks for your reply. 
  • SFSLExpertSFSLExpert Forumite
    28 posts
    Second Anniversary 10 Posts Name Dropper
    sheramber said:
    Them's the rules. 
     It is the income for 2018/19 unless  the current year is 15% less.
    Next year it will be 2019/20 income.

    The self employment figure is the amount of profit for tax in the tax calculation. 
     If , by tax free allowance , you mean the personal allowance then no, that is not deducted.
    Hi,

    Strictly speaking, inaccurate.

    The information Student Finance ask you for is relative to the tax year less one in relation to the Academic Year you are applying to receive funding for. It is set within the appropriate Legislation.

    2020/21 will require your Financial Information (FI) for 2018/19. But, as mentioned of there has been an overall change of 15%+ you can request a Current Year Income (CYI) Assessment. This would then allow you to estimate your FI for the year in which the Academic Year coincides which is 2020/21.

    In truth, no one can really give a truly accurate estimate of their income, so you can only be as accurate as you can be.

    You are correct to think that if you underestimate, you will need to repay any overpayment of funding. However the same is true if you overestimate your income. If, when they finalise your income, it transpires your child was entitled to more, they will receive payment.

    There is no limit to how many times you can apply to have a CYI Assessment done for a student.

    If you estimate your FI to be £6,000 but in November you've already made £20,000 (or viceversa) then update your FI with them and they will adjust the funding where appropriate.

    If you are successful in your CYI application, the information you supply will be used until the Academic Year where the 2020/21 FI would be required in any case, this would be 2022/23.

    That being said, if your income changes again by 15%+ in 2021/22 and/or 2022/23 you are free to submit a fresh CYI Assessment request.

    Finally (sorry) you are correct. You will be asked specifically to detail your Allowable Expenses, but you do NOT deduct your Tax Free Allowance.

    Hope this helps.

    Disclaimer: not an expert
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