Self-Employed Accounts Student Loan Maintenance Application

SonicDad777 · 3 May 2022 at 11:57AM

As a self employed person when submitting accounts to see how much our child qualifies for do I put down Gross Income or Net Profit?

Ebe_Scrooge · 3 May 2022 at 2:54PM

The loan eligibility is based on gross pay for a standard PAYE parent. If you're self-employed, you need to determine what your pay is.

When you say "gross income", do you mean your company's turnover? From that, you'd deduct expenses when submitting the company tax return? Then you'd pay yourself a salary, on which you'd pay personal tax? If so, then you'd put down the personal income your company pays you, before you've paid personal tax on it.

I've assumed you've got a Ltd. Co. for this. If you're a sole trader, then it's Gross Income minus Allowable Expenses, prior to tax being paid. Say you've had an income of £60,000, but legitimate expenses (materials, vehicle, whatever, let's say you're a builder) of £20,000, you'd declare a gross income of £40,000. This is what you'd declare to SLC, and is also the amount you'd be paying tax on. What you need to declare to SLC is pretty much the same as what you put on your tax return.

Hope this helps.