The Student Room Group

Maintenance Loan - Household income Feelance

Looking at how household income affects a maintenance loan.
Both my parents are freelance. Therefore yearly household income differs massively year to year. My mum's income is the more rigid of the two but is still no where near linear. My dad’s income varies year to year he also is disabled with chronic pain and can’t always work so this affects his income, his job also includes a large amount of deductions and expenses.
I will be living away from home and due to family circumstances it’s unlikely my parents will be able to provide me with any financial support
I’m wondering how exactly is household income assessed and what evidence do you need to provide? Would it be based off their Gross or Net income? When income varies massively year to year how is assessed?
Understand that’s a lot of questions. I’ve looked online and couldn’t really find any answers. Just wondering if anyone can give me an overview of how this might be assessed.
Original post by MiaALD91
Looking at how household income affects a maintenance loan.
Both my parents are freelance. Therefore yearly household income differs massively year to year. My mum's income is the more rigid of the two but is still no where near linear. My dad’s income varies year to year he also is disabled with chronic pain and can’t always work so this affects his income, his job also includes a large amount of deductions and expenses.
I will be living away from home and due to family circumstances it’s unlikely my parents will be able to provide me with any financial support
I’m wondering how exactly is household income assessed and what evidence do you need to provide? Would it be based off their Gross or Net income? When income varies massively year to year how is assessed?
Understand that’s a lot of questions. I’ve looked online and couldn’t really find any answers. Just wondering if anyone can give me an overview of how this might be assessed.



For the academic year 2024-25, household income for the financial year 2022-23 will be used. But if your parents’ household income has dropped by 15% or more since then, they can ask SFE to look at their likely income for the current financial year. Gross income is used.

https://www.gov.uk/guidance/understanding-student-living-costs

https://www.gov.uk/apply-for-student-finance/household-income
Reply 2
Original post by normaw
For the academic year 2024-25, household income for the financial year 2022-23 will be used. But if your parents’ household income has dropped by 15% or more since then, they can ask SFE to look at their likely income for the current financial year. Gross income is used.
https://www.gov.uk/guidance/understanding-student-living-costs
https://www.gov.uk/apply-for-student-finance/household-income


For people who are self employed is it based on Gross income or Net income? As for my household that is a massive difference
Original post by MiaALD91
For people who are self employed is it based on Gross income or Net income? As for my household that is a massive difference


It will need to match the gross income (before tax and national insurance) that your parents declared for tax purposes for 2022-23. Have a look at the attached form for details of what questions will be asked:

https://media.slc.co.uk/sfe/2425/ft/sfe_pff2_form_2425_o.pdf
Reply 4
Original post by normaw
It will need to match the gross income (before tax and national insurance) that your parents declared for tax purposes for 2022-23. Have a look at the attached form for details of what questions will be asked:
https://media.slc.co.uk/sfe/2425/ft/sfe_pff2_form_2425_o.pdf


Okay thankyou
My parents submit their Net income for Tax as due to their job they have a number of deductions and expenses.
So basically you just submit whatever amount you declare for your tax?
Original post by MiaALD91
Okay thankyou
My parents submit their Net income for Tax as due to their job they have a number of deductions and expenses.
So basically you just submit whatever amount you declare for your tax?


Yes that's right - it's what they have declared as their taxable income (so before tax has been deducted but after allowable deductions for expenses, etc.). Sponsors are required to submit their NI numbers so that it can be checked with HMRC. Use the figures that were submitted in their 2022-23 self-assessment tax returns.
(edited 1 month ago)

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