Self Employment, Farming or Rental
If your household income for 2016 was, in part, or all, from self-employment, farming or property/land rental, then the following information will apply to you.
We will need you to send us the following documents:
- Revenue’s indicative calculation on which you based your self-assessment
- A full set of trading accounts, for 12 months, ending in the year 2016 (for each set of trade , farming or rental income listed on the Revenue’s indicative calculation on which you based your self-assessment, under schedule D) to include the following:
- Trading profit and loss account
- Capital Account
- Balance Sheet
- Adjusted Profit Computation
We do not accept the Form 11 in place of the trading accounts or the Revenue’s indicative calculation on which you based your self-assessment. In certain circumstances, however, the Form F11 may be requested. Please note that accounts ending in 2017 are not acceptable.
We also need to know:
- If the business is trading as a limited company, a partnership or a sole trader. This information should be included in the accounts.
- Please ensure that you also inform us of any directorships or shareholdings held, in Section F, part 6
If your income is low, you may not be required to keep a capital account and balance sheet. In that case we will need to see the profit and loss account or the income and expenditure account and the Revenue’s indicative calculation on which you based your self-assessment
Even if your Revenue’s indicative calculation on which you based your self-assessment, states an income of “0” we will still need to verify this with a set of accounts for the year 2016
Net Income and Add-backs
Certain deductions allowed by revenue are not allowable for grant assessment purposes; these are known as Add Backs. A list of these Add Backs can be found in the Student Grant Scheme and would include the following;
- Interest on borrowing which funds the fixed assets of the business or the personal expenditure of the proprietor;
- Finance lease payments;
Remuneration in respect of;
- Wages or payments made without applying the PAYE and PRSI regulations, or equivalent regulations;
- Wages or payments to dependent children; and
- Wages or payments to non-dependent children where the payment is above the norm for work undertaken.
- Add-back for personal expenditure charges against the business income.
An example of personal expenditure would be personal use on motor expenses, light and heat and telephone.
In calculating the reckonable income for a self-employed person, we will use the net profit, as taken from the profit and loss account and “add-back” items as listed above.
Please note the following details in relation to Farming Income.
- Any income tax adjustment for farm stock relief is disregarded
- Farming accounts are sometimes averaged over a three year period. We only look at the income in the relevant year, 2016. Therefore we will need to see the accounts for the year in question.
Change in Circumstances:
- The nature of self employment, farming and rental income is variable and a reduction in such is not considered to be a permanent change. This means a change in circumstances cannot be taken into consideration.
- However, if you have ceased trading, this may be taken into account in assessing a Change in Circumstances.