Self Employment Income Calculator

How is my Self-Employed Income Assessed?

When borrowing money from a bank or a lender, a self employed person's income will be open to interpretation. Banks and lenders will always look on the historical figures and use this to assess your income.

To have a figure or an amount for your income, banks use your tax return from the previous years (in most cases the last two years) and add back things like depreciation, one off expenses and any additional superannuation you paid.

How to Show your Proof of Income

Below are some proof of income that self employed people can use to verify financial stability when applying for a loan.

Wage and Tax Return Statement

Wages and Tax Statement is a legal document and one of the most reliable proof of income for self employed people. It can help to prove that you are a tax payer with a stable earning from your business or a self employed job.

Profit and Loss Statement

This is a statement that summarizes your costs, expenses, and revenues of your business. This can be helpful especially when applying for a loan as it demonstrates you business' earning capabilities and could show how economical you are when handling loss.

Bank Statements

Your bank statement can also be a good proof if income especially if you have a history of consistent and regular deposits. When using your bank statements as proof of your income, it's best to have a separate account for your business, ensuring this business account is not used for any personal expenses.

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