How to get proof of income when you're self-employed

If you’re self-employed, there may be times when you need to prove your income. Such as when applying for something important, like a mortgage or credit card.

However, without a regular payslip, proving your earnings can be tricky.

In this guide, we’ll break down the documents you can use to show proof of income. Plus, how to keep your financial records organised for when you need them.

Proof of income explained

If you’re borrowing money, you may need to show you’re not a financial risk.

Proof of income shows how much you have earned in a given period, helping demonstrate you’re financially stable and trustworthy. This can be crucial when you’re applying for things like rental agreements or funding for your small business.

Lenders, landlords, and companies may want to know if you can afford repayments. But how do you prove this if you don’t have predictable income from an employer?

Luckily, self-employed people can use things like tax returns or bank statements. 

When is proof of income required in the UK?

Here are some common situations where you may need to prove your income:

• Applying for a loan: Banks and lenders need to know whether you can afford to pay them back, alongside any additional interest you gather along the way

• Applying for a mortgage: A mortgage is a long-term loan and requires detailed proof of your income to help lenders decide your monthly repayments

• Renting from a landlord: Your landlord or letting agent may want to ensure you can afford rent during your contract, alongside any surprise costs or hikes

• Getting a credit card: Some credit card providers may need proof of income to help them decide your spending limit and ability to manage repayments

• Business grants or funding: If you're self-employed and applying for business funding, proof of income may be needed to show you’re financially stable

• Applying for a visa: If you’re moving to the UK, you may need to prove you have enough money to support yourself once you live here

• Claiming benefits: Financial aid from the UK government, such as Universal Credit, uses proof of income to assess whether you’re eligible for their support

• Paying child maintenance: If you’re involved in a child support case, they may ask for proof of income to determine how and much you can afford to pay

• Applying for car finance: Some lenders may ask for proof of earnings before approving a car lease or loan, so you can’t buy a car out of your price range

• Getting private healthcare: Some private health insurance providers ask for proof of earnings to determine premium costs or eligibility for coverage

Other scenarios may include adopting a child, using ultra-luxury services, or being a guarantor for someone. You never know when you may have to prove your income.

What qualifies as proof of self-employed income?

If you’re self-employed, you won’t have a traditional payslip, P60, or employment contract to verify your earnings. Instead, you’ll need to provide alternatives.

Here are some documents to hold on to, in case you need to prove your income.

Tax returns

Your tax return for Self Assessment is one of the most reliable ways to prove your income. It's a full breakdown of your earnings and tax contributions over the year. An SA302 form also acts as proof of earnings. 

Bank statements

Bank statements showing regular income from clients or customers can help demonstrate your earnings. It’s a good idea to keep a separate business account.

Invoices

Sending invoices for your work to customers? These are useful for proving your income and keeping track of your customer payments. Our invoice software can help.

Profit and loss statements

Lenders and financial services often request this document. It shows your business revenue and expenses over a set period, showing how much you’ve earned after costs.

Contracts

If you have long-term or recurring clients, contracts outlining their payment terms and your future expected earnings can help show you’re in a stable position financially. 

Letter from an accountant

A signed letter from an accountant verifying your income and financial health can serve as proof. Especially for mortgage applications or large financial transactions.

Need someone to look after your finances? Find a qualified accountant with us.

With these key documents, you should find it easier to secure loans, rental agreements, or other financial commitments. In some circumstances, you may be able to use less traditional evidence, such as your earnings reports from eBay, Patreon, or Fiverr.

Like any financial situation, you must be transparent and honest about your income. If you falsify or make a mistake on a tax return, you may get a penalty from HMRC.

How to provide watertight proof of income

Running a small business keeps you busy, but it’s important to keep detailed records of your earnings. Especially when you need to prove your income for loans, rent, or taxes.

Here’s how to stay on top of your finances and ensure your proof is rock solid.

Maintain accurate records

Keeping good records can prevent you from worrying further down the line. Organise and keep your invoices, bank statements, tax returns, and profit and loss reports.

Using software can help you automate record-keeping and create regular reports.

Ensure separation of business and personal finances

Tracking your earnings is easier if you have separate bank accounts for business and personal transactions. Plus, you won’t have to disclose your private spending.

Plan ahead financially

Think about your future financial needs, using cash flow planning software. Be prepared for changes in the market and have the necessary funds available for emergencies.

Work with an accountant

An accountant can help take care of the money side of your business. They can prepare financial statements, help verify your income, and keep regular records. Some lenders may prefer a final sign-off from an accountant as part of their approval process. 

Use accounting software to manage your finances

Accounting software like QuickBooks makes it easier to track and prove your income:

• Business income in one place: Easy access to invoices, transactions, and statements

• Easy reporting: Generate financial reports to share with potential lenders

• Organise transactions: Categorise transactions with a tidy tagging system

• Secure cloud storage: No more hunting for paperwork at the last minute

• Share data easily: Export and share information with whoever you choose

Save time and stress, so you can focus on running and growing your business.

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Frequently asked questions

Do my proof of income documents need to be recent?

Yes, most lenders want to get an idea of your earnings now, so your documents should be recent (within the last 3 to 6 months). However, for some tax purposes or mortgages, financial institutions may ask for financial records from the past 1 to 3 years.

How do I show proof of income from multiple sources?

Mark your documents, such as bank statements, invoices, tax returns, and profit and loss statements, to give a clear and full picture of your earnings from multiple sources.

When might I need proof of income?

You may need to prove your income when applying for a loan, mortgage, or credit card, renting a property, filing taxes, applying for benefits, or securing a visa. Some clients or insurers may require it for contracts, or when dealing with expensive items or clubs.

The information on this website is provided free of charge and is intended to be helpful to a wide range of businesses. Because of its general nature the information cannot be taken as comprehensive and they do not constitute and should never be used as a substitute for legal, accounting, tax or professional advice. We cannot guarantee that the information applies to the individual circumstances of your business. Despite our best efforts it is possible that some information may be out of date. Any reliance you place on information found on this site or linked to on other websites will be at your own risk.