In December, we changed the way we assess the income of self-employed contractors earning more than £75,000 a year, as well as the income proofs we require from them.

We now calculate their income as their average weekly contract income multiplied by 46, provided they can evidence:

  • over a 12-month period (incorporating the date of application) they have received or will receive sufficient income from one or more contracts
  • they have received a minimum of 6 months’ income from one or more contracts immediately preceding the date of application
  • they have had no more than a 6 week break between contracts in the 12-month period
  • their latest 3 months’ consecutive personal bank statements for their main account (not required if their main account is with NatWest or RBS)

There is some additional information that you need to be aware of when submitting an application for a customer who meets these criteria:

  • Umbrella arrangements. We cannot consider applications on the above criteria from customers using an umbrella company arrangement. Under these circumstances we would consider an application under our standard self-employed policy.
  • 100% shareholders of Ltd. companies. We can only consider applications from customers who are limited company contractors on the above criteria if they are 100% shareholders. Where their company has a 50%:50% split of shares with a spouse or partner, we will assess the application under our standard self-employed policy.

To ensure we meet our commitment to responsible lending, when considering the committed expenditure of self-employed contractors earning over £75,000 a year, please ask your customers to take into account any professional fees and expenses relating to their role that will need to be covered on an annual basis. These may include but are not limited to costs such as indemnities, subscriptions, professional memberships and training expenses in order to complete their duties. Extended travel and accommodation costs that are not reimbursed via a contract should also be seen as an expense.

Find out more information about our packaging requirements.