If you are self-employed, you may sometimes need to prove your income.
This could be when you apply for a mortgage, rent a property, take out a loan, or open a business account.
Because you do not receive payslips, you will need to show other documents that demonstrate what you earn and how long you have been trading.
This guide explains what most organisations will accept as proof of income, how to get those documents, and what to do if your trading history is short or irregular.
What does proof of income mean?
Proof of income is evidence that shows your business earns a regular, verifiable income and that the figures you declare to HMRC are accurate. It usually includes documents that confirm:
- how much you earn in a typical year
- that the income has been declared for tax purposes
- that your income is likely to continue
Lenders and other organisations are mainly checking for stability and consistency, not perfection.
The main documents to provide
The exact requirements depend on who you are dealing with, but most organisations will accept the following:
1. HMRC tax documents
Your SA302 tax calculation and Tax Year Overview are the most important pieces of evidence. These come directly from HMRC and show the income and tax due for each year you have filed. Y
ou can download them from your online Self Assessment account once your return has been processed.
2. Business accounts
If you prepare annual accounts, share copies that show your turnover, expenses and net profit. Most lenders prefer at least two years of accounts, but some will accept one if you have a strong track record. If you use an accountant, ask them to sign or certify your accounts. This makes them more reliable and easier for lenders to assess.
3. Bank statements
Recent statements help verify that your declared income is real and consistent. You will usually need to show three to six months of both business and personal statements.
Keeping separate accounts for business and personal spending makes this process easier.
4. Invoices and contracts
If your income is variable or seasonal, include copies of regular invoices, ongoing client contracts or retainers. These show that your work is repeatable and that your income is likely to continue.
5. Accountant’s letter
An accountant’s letter confirming your trading history and income can strengthen your application. It is not essential, but many lenders and landlords appreciate a professional summary.
How much history is usually required
Most high street lenders ask for at least two full years of trading history. They may average your profits over those years to calculate affordability. Some will use the lower year if your income has fallen.
Specialist self-employed lenders can sometimes work with one year of figures if the business is growing or if you can show strong evidence of continued income.
If you are new to self-employment, it can help to wait until you have filed your first return before applying for major credit.
Digital verification options
Many organisations now use digital tools to check income. Lenders can view your tax data directly through HMRC’s Income Record Viewer, with your consent. Others use Open Banking technology to review your transaction history securely.
These systems are not used by everyone yet, so it is still worth keeping your own copies of key documents.
Timing and tax years
You can only prove income for completed tax years. If you file your Self Assessment return in January 2025 for the 2023 to 2024 tax year, some lenders will not use that data until after April 2025, when the tax year officially ends.
If you are planning an application, make sure you know which years your lender or landlord will consider.
If you have an unusual trading pattern
Not every year looks the same, and that is normal. What matters is that you can explain the changes.
- If you have been trading for less than a year: use invoices, contracts and bank statements to demonstrate current income. Some lenders will consider your case if your business is clearly established.
- If your profits dropped due to illness, maternity leave or investment: include a short explanation with supporting evidence, such as more recent invoices or management accounts.
- If you made a loss: provide details of what caused it and show that the business has recovered.
- If you expect higher income this year: you can include projections, but lenders are more likely to rely on your last completed tax year.
Credit checks and other factors
Proof of income is only one part of an assessment. Organisations will also look at your credit record, existing commitments and general financial behaviour.
Check that your personal information is accurate with the credit reference agencies before applying.
Sole trader and limited company differences
This guide applies to sole traders who pay tax on business profits.
If you are a director of a limited company, you will normally need to show company accounts filed at Companies House, dividend vouchers, and sometimes payslips if you take a salary.
For a detailed comparison, see our mortgage guide for sole traders and limited company directors.
How to stay organised
It is much easier to prove income when your records are kept up to date. Try to:
- download your SA302 and Tax Year Overview each time you file
- keep at least two years of accounts in one folder
- store three to six months of recent statements
- label and file invoices, contracts and receipts
- back up everything digitally in case you need to share it quickly
If your business is growing, it may be worth using an accountant to manage your records and produce certified accounts. You can read more here: Do you need an accountant as a self employed person.
To check or register for a Unique Taxpayer Reference, visit our UTR guide.
Keeping accurate records is one of the simplest ways to show that your business is stable and well-managed.
With your SA302s, accounts and statements in order, you will be ready whenever an organisation asks for proof of income, and that can make all the difference when an opportunity comes along – especially if time is short.
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