Do all self-employed members need to provide 12 months of bank statements?

For self-employed individuals, the requirement to provide 12 months of bank statements is not universally applicable. Instead, the guidance points towards a more nuanced understanding based on the nature of the self-employment income, particularly in the context of “Cash for Services.” If the self-employed income is largely derived from cash transactions and does not have a clear paper trail (like invoices or contracts), the primary focus may shift towards verifying those cash transactions through bank statements. This kind of income can be less straightforward to validate, which is why those self-employed members might not be required to present a full year’s worth of statements; instead, recent and relevant documentation might suffice to demonstrate cash flow.

By contrast, other forms of self-employment, which have more predictable and documented revenue streams, might require more extensive proof of income, including more detailed bank statements. Additionally, if any discrepancies arise or if a counselor requires additional proof, they may ask for more documentation, but it’s not a blanket requirement for all self-employed individuals.