Proof of income: what it is and how to obtain it
If you’re an immigrant who’s recently arrived in the UK, you’ll no doubt be excited, and perhaps a little daunted, to begin your new life. However, in order to live and work in the UK, there are some logistical requirements you’ll need to sort out first. For instance, if you want to open a bank account or register for healthcare, you’ll need proof of address. Similarly, if you want to rent a place to live, or apply for a loan or credit card, you’ll need proof of income. While proof of address indicates legal residency, proof of income is typically used as a financial security measure, indicating your suitability to landowners and lenders.
At WorldRemit, many of our team are first or second-hand immigrants, and so understand both the joys and difficulties of moving to live and work abroad. That’s why we’ve put together this simple article on which documents constitute proof of income, and how to acquire them.
WorldRemit Content Team
• 3 mins read • Updated
What is proof of income
Simply, a proof of income is a document that indicates your UK earnings. Several different documents can be used as proof (more on this below), but they all serve the same purpose. Typically, they’re required by landlords, mortgage providers, and banks, and are used to assess your financial reliability.
Why is proof of income necessary?
Proof of income documents detail how much you earn, and over what time period. That’s why they’re useful tools for lenders and landlords – both assessing your financial stability before committing to lending you money, or renting you a property.
What constitutes proof of income?
We’ve looked at reasons why proof of income is necessary – now let’s take a look at which documents will qualify as proof.
Payslip
If you’re in UK employment, you’ll probably receive your payslip by email or post. This can be used as proof of income, and also includes your National Insurance number and tax deductions.
Bank statement
This is a commonly requested proof of income – even though it may seem a little invasive. You may be asked to provide your latest statement, or a number of statements dating back over a certain period. Bank statements are often requested, as they provide lenders with greater insight into your financial behaviour, helping paint a clear picture of your financial stability. Remember, though, no lender or landlord will ask for financial account passwords, so remain vigilant and never part with this information.
Self-Assessment tax return
A self-assessment tax return from HMRC can be used as proof of income. Aside from detailing salary information, this form of proof will also include any income from other sources (such as investments or rental properties).
Employer letter or ‘official letter’
If you’re in employment but yet to receive a payslip, you can request a signed letter from your employer confirming your income and position. This is sometimes known as an ‘official letter’, and can be used as proof of income.
How to obtain proof of income
Obtaining proof of income shouldn’t be too difficult. You can print or screengrab bank statements or payslips. And, if you need to provide a copy of your Self-Assessment tax return, you can request one from HMRC online or via phone. If you need an employment letter, simply ask your employer – it’s part of their duty to deal with these kinds of requests, so don’t be shy.
Living abroad and sending money home
As we’ve explored, proof of income is always required when securing accommodation or loans in the UK. But obtaining it needn’t be too difficult. We hope this article has been helpful – for more insights head over to our blog. You’ll find a selection of articles put together especially for people living and working abroad.
And, if you’re sending money to loved ones back home, we can help. At WorldRemit, our service is fast and secure – and our low fees will save you money, too.
So, why not make a money transfer today?
Proof of income : FAQs
Are bank statements proof of income?
Yes, as long as they indicate regular payment from an employer or clients.
What is an ‘official letter’ for proof of income?
An ‘official letter’ is a letter directly from, and signed by, your employer. It serves as proof of income, and officially details your pay and position.
What is suitable proof of income for self-employed people?
Both tax returns and business bank accounts can be used as proof of income for self-employed people.
The contents of this blog post does not constitute legal or financial advice and is provided for general information purposes only. If you require specific legal and / or financial advice you should contact a specialist lawyer or financial advisor. Information true at time of publishing.
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