Your own income
The income on which you’re assessed is that which you estimate to make during the academic year for which you are applying for funding. All taxable sources of income should be included, but any source of income which is not regarded as taxable under the Income Tax Acts in the UK (or the equivalent legislation in any other EU country) is wholly ignored. This, therefore, excludes income from most scholarships, tax credits, and non-taxable benefits such as child benefit, housing benefit, most disability benefits and most payments of income support.

There are a number of other disregards available. Although taxable, earnings from part-time or casual work undertaken during the academic year by you (the student) are also ignored. Payments into a pension scheme attracting tax relief, or payments paid as maintenance to your children or any former spouses or partners, are deducted from your assessed income. Lastly, if you have any dependent children, £1,100 will be deducted for each child from your assessed income.

Income which is included would come from, for example, the gross interest on your savings, or dividends on any stocks, shares or other such investments that you have.

Circumstances where parental income is not included
Your parents’ income is not included (i.e. you’re classed as 'independent') in the means test for that academic year if:

1. you have reached the age of 25 before the beginning of the academic year, or
2. you marry or enter into a civil partnership before the beginning of the academic year, or
3. you have a dependent child or children of your own, or
4. you have been 'self-supporting' for any three years before the academic year in which your course begins (self-support can include periods of unemployment and participation in training schemes for the unemployed - check with your local authority, Student Finance England or your students' union), or
5. you received any pension, allowance or other benefit as a result of your sickness, disability or injury (including maternity allowance); or
6. you are irreconcilably estranged from your parents, or have been in custody or care; or
7. your parents cannot be found or it is not reasonably practicable for your parents to send parental contributions to the UK; or
8. it would place your parents in jeopardy; or 
9. you are an orphan; or
10. you are a member of a religious order residing in a house of that order.

If you turn 25, marry or enter into a civil partnership during an academic year you are classed as independent from the beginning of the next.

Parental contribution
If you don’t fall into the categories above, then the income of your parent or parents will be taken into account when calculating your household income. The local authority or Student Finance England will then assess what, if any, contribution you expect your parent or parents to make towards your student support.

While parents are urged by the authorities to pay the assessed contributions, this cannot be legally enforced.

Unlike students, the parental contribution is calculated using the parents' income from the preceding full tax year (as opposed to the current academic year). However, should the level of income substantially fall in that academic year a request for a reassessment can be made with the local authority or Student Finance England. The income used in the assessment is the residual income, calculated by taking into account their gross income, then subtracting pension scheme and superannuation payments which attract tax relief. A further £1,100 is deducted for each additional dependent child your parent has, or if your parent is themselves a student.

Your assessed income is then added to this figure, and converted into a contribution figure (see below). The assessed contribution first reduces the maintenance grant or special support grant (as appropriate), then any grants for dependants to which you are entitled , then 25 per cent of your student loan for maintenance and, finally, any grant for travel payable, until the whole contribution is 'used up'.

Spouse or partner’s contribution
If you are an independent student with a spouse, civil partner or cohabiting partner, their income will be assessed in the same manner as with the parents of dependent students.