Statistics show more and more people are becoming self-employed. We’ve summarised some of the key pieces of information for customers who fall into this category and who may not have yet submitted a deferment application since their employment status changed.
Although the deferment process for self-employed customers is exactly the same as those in employment, different sections of the Deferment Application Form (DAF) will be relevant.
Customers who are self-employed, or who get part of their income from self employment, need to fill out the amount they earn from self employment in section 4(b) and section 8 of the DAF. Importantly, for the self-employed element of your total income you need to declare your net income (i.e. your income after deducting business costs) and not your gross income as is the case for the majority of other forms of income considered in the DAF.
If you are declaring earnings from self employment income and are not enclosing a tax return or SA302 (a form summarising income that has been reported to HMRC), or if your earnings from self employment have changed since the period covered by the tax return, you will need to supply one of the following:
1. Copies of three months’ bank statements showing self employment income and purchase invoices; or
2. A copy of an accountant’s letter (on company headed paper), signed and dated within the last three calendar months, confirming your net income.
As you fill in the rest of the DAF, please ensure you consider any other forms of income you might receive, such as dividends, rent, certain state benefits (see section 6 of DAF), income from family, spouse and other third party payments. If you are in doubt about what should be included and can’t find the answer you need in our How to Guide please call 0333 003 7188 and one of our team will be able to help.
When submitting supporting evidence for proof of earnings and other income, please remember to send copies and not originals, as their return cannot be guaranteed. Black and white copies are sufficient in all cases.
Erudio Student Loans Limited is registered in England and Wales with company number 8605918. Its registered office is c/o Wilmington Trust Sp Services (London) Limited, Third Floor, 1 King’s Arms Yard, London, EC2R 7AF.
Erudio Student Loans Limited is authorised and regulated by the Financial Conduct Authority for certain credit-related regulated activities. It is registered on the Financial Services Register under registration number 659653.