Business income

When a student or their partner receives income from business activities, including where they are self-employed, this income is included in the definition of 'personal' or 'partner' income for Student Allowance purposes.

The definition of income for Student Allowance purposes is wider than the definition of income used for PAYE tax purposes. This reflects the different objectives and purposes of the Student Allowances Scheme from the purposes and objectives of PAYE taxation.

Where they own a business, their income for Student Allowance purposes is the higher of either the net profit or drawings they receive from the business. A copy of the business accounts may be required to correctly identify any income received as it may depend on how the accounts are structured and how particular 'income' transactions are recorded.

It is also important to look for any possible deprivation of income.

Where they have multiple forms of income, a loss from one form of income cannot be offset against other forms of income.

A loss is effectively nil income for Student Allowance purposes.