Residual income is the net amount of declared income used to determine the contribution to your means-tested bursary award.
To calculate this, your parent(s), civil partner, or partner's gross taxable income for the previous financial year is used. For the 2016/17 academic year, the applicable financial year will be the period running from 6 April 2015 to 5 April 2016.
Certain allowable expenses are deducted from this to give the 'residual income'.
The allowable expenses we can take into account against the income are:
- employee pension contributions, if they attract tax relief
- personal pension contributions, if they attract tax relief
- loan interest - if allowed for tax purposes, this is for self-employed persons only
- professional subscriptions and any other tax relievable expenses
When calculating a partner's residual income to determine any Dependants Allowance entitlement, we take into account:
- Income Tax
- National Insurance
- Mortgage payments or rent payments
- maintenance payments made to another person as agreed by a court order, by the Child Support Agency or through a voluntary agreement