How To Claim For Loss Of Earnings After An Accident or Injury?

By Joanne Jeffries. Last Updated 13th October 2021. Throughout this online guide, we going to discuss how to claim for loss of earnings compensation. In doing so, we will provide free legal advice and address how a personal injury solicitor could help you throughout the claims process.

how to claim for loss of earningsHave you been injured in an accident that wasn’t your fault? Did your personal injury cause you to experience a loss of earnings? Maybe you were unable to work for a long period of time? Perhaps you’re self-employed and are not entitled to sick pay; or you run your own business and missed out on a valuable contract, or other opportunities, due to ill health or injury? Don’t worry. Maybe your accident was so severe, you had to leave work altogether or retrain for another profession (for example if you experienced a hand injury which meant you were no longer able to perform manual tasks within your job). Personal injury lawyers could help you calculate loss of income, and help you make a personal injury case for compensation.

Trust Accident Claims UK to help you claim compensation for loss of earnings. What’s more, we can help you claim general damages for the illness or injury you experienced, which was caused by your accident. Call us today on 0800 073 8801 to get started and ask us how to calculate loss such as lost wages, or fill out our online loss of earnings claim form. We’re looking forward to hearing from you. In the meantime, read this guide to making a successful claim for lost earnings, to find out more.

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A Guide to Making A Claim For Lost Earnings After An Accident

Welcome to our guide on how to claim for loss of earnings compensation.

Personal injuries, unfortunately, almost always result in a financial loss for the sufferer. This happens firstly because the injured person usually incurs additional expenses due to their illness or injury, for example, medical expenses, transport expenses and the expense of receiving at-home care.

You can see, for example, the numbers of people seriously injured on UK roads in 2020, which could lead to a significant period of time off work.

how to claim for loss of earnings statistics graph

It is common for injured parties to experience a loss of income if their injury means they are unable to work for a period of time, or ever again. In this loss of earnings, claims guide we look at loss of income or earnings definitions and, how loss of income affects the employed and self-employed differently. We will inform you about what you need to do in order to calculate your average net take-home pay which can form the basis of your compensation claim, how to make your claim, and how to find the best personal injury solicitor to help you make your loss of income personal injury claim.

If you have experienced an accident that wasn’t your fault, which caused you to suffer an injury or illness that resulted in your losing your income then trust Accident Claims UK to help you claim the loss of earnings compensation that you are entitled to. We are a trusted personal injury firm, who can provide you with a top solicitor to win your loss of income claim and help you claim general and special damages for your injuries as well. At Accident Claims UK, we offer a free personal injury claims consultation, where we can advise you on how to claim for loss of earnings compensation in the UK, judge whether or not you have a legitimate claim to make, estimate how much compensation you can claim. We will provide you with a top personal injury solicitor, who will proceed with your claim right away.

What Does Loss Of Income Mean (Loss Of Income Definition)?

Accident Claims UK recognises the definition of lost earnings as the loss of income that happens when a claimant experiences an accident, which results in them becoming ill or injured which in turn, prevents or restricts the claimant from being able to earn their usual wage or salary. This may be temporarily, or permanently depending on the severity of their injuries. Loss of earnings may also occur if a person has to retrain for another profession if their injury means they are unable to work in their chosen field permanently. This will, of course, create a loss of earnings in the time it takes to leave one profession and retrain.

As well as losing one’s monthly income, a personal injury can also have an effect on long-term investment products including your regular savings plan or their pension. If you have experienced a loss of earnings, whether you are self-employed or employed full time, you can use an online loss of earnings calculator to estimate the loss of earnings you have currently experienced and use an online future loss of earnings calculator to estimate how much money you are likely to experience in the future.

We’ll show you how to claim loss of earnings compensation later on. Essentially, though, providing a range of pay slips for a 6-month period prior to the accident should be ample evidence to support your claim.

Please continue reading this guide for more information on how to claim for loss of earnings compensation.

Claiming For Lost Earnings In The Future

If you can prove a loss of future earnings is likely to occur in the future, you will claim compensation for this. However, you can only claim for lost earnings in the future if it is something tangible, like a devalued pension plan. You cannot claim for speculative lost earnings such as an investment. You can also claim for lost earnings if your injury has damaged your ability to work in the future, your career prospects, or meant that you will have to leave your profession and retrain. You can use a future loss of pay and income calculator to determine how much you could claim.

Loss Of Overtime Pay, Sick Pay And Other Benefits

In addition to wondering how to claim for loss of earnings compensation, you may have had to miss time at work, meaning you’re owed paid sick and holiday days in lieu. It’s not fair that you should miss out on these because you were injured, or made ill, so your solicitor can calculate how much you are owed for the days off in lieu and help you to claim the compensation for this lost income. You may have missed out on other work-related benefits such as monetary bonuses or overtime pay in the same period. If you can provide proof that you missed out on overtime pay by missing opportunities to work or a workplace bonus, your Accident Claims UK solicitor can help you claim for these as well.

Making A Loss Of Earnings Claim When You Are Self Employed

Clients often ask us “can I make a loss of income claim if I am self-employed?” and the answer is yes – but the process will be more complicated than for someone who has experienced a loss of earnings from their employer. Therefore, it’s common to wonder how to claim for loss of earnings compensation if you’re self-employed. It is possible to claim compensation for loss of pay and income due to an accident if you don’t have a self-employed loss of earnings insurance policy in place.

If you wish to make a claim for lost earnings and you are self-employed, there are some steps you will have to take to support your claim.

  • Work out and how much of a financial loss you have already made.
  • Use an online calculator to work out how much of a financial loss you are likely to make in the future.
  • Find proof of previous earnings by keeping records of all of your previous invoices and receipts, including wage slips
  • Find proof of earnings lost due to missed orders or unfilled contracts due to your personal injury.
  • Ensure you have 3 years history of verified company accounts ready to support your personal injury compensation claim.

You should notify your accountant of your absence from work so it can be indicated on your tax return. In many cases, your accountant will be able to help you prepare and gather evidence to make your compensation claim agains the liable party’s insurance company for lost pay and income as a self-employed worker.

What Is Net Monthly Pay (Wage) And What Does It Mean?

If you’re wondering how to claim for loss of earnings compensation, you will only be able to claim your net monthly pay (wages or salary) in compensation. Net monthly pay refers to your income which is left after tax, national insurance and any incentivised deductions you pay into such as a company car.

Things To Think About When Making Your Claim For Loss Of Earnings, UK

If you wish to claim for a loss of earnings in the UK, you will have to prove certain things to have a legitimate claim. Firstly you will need to prove that the accident that caused your earnings loss was not your fault. Usually, you would have to prove that it happened due to the negligence of another party. Secondly, you need to prove that your accident caused you to have injuries or an illness that meant it would no longer be possible for you to be returning to work.

To do this, you will need to provide medical evidence such as doctor’s report, X rays or test results, or a psychiatrist’s report, if you are unable to work because of psychological damage caused by the incident. As we have already established, you will also have to provide loss of earnings claim letter or loss of earnings claims form, with evidence of the income you would earn had you been able to work during that time.

How Do I Prove Loss Of Earnings?

If you’re wondering how to claim for loss of earnings compensation in the UK, you will need to be able to prove how much income you have lost, including your loss of projected future income. To prove this, you will need to be able to provide a loss of earnings claims letter, with a detailed Schedule of Loss.

If you are an employed person, you need to be able to show proof of six months worth of wages if you are a self-employed person, you need to be able to present proof of three years of verified business accounts. You can also claim for loss of overtime income if you are able to show the court a proven history of working overtime. If you wish to sue for future loss of earnings, you need to provide evidence to support this claim, such as a newly revised pension statement from your pension provider which will show how the pension payments you were made to miss have devalued the worth of your pension overall. As provided by Accident Claims UK, your personal injury solicitor will be able to create a loss of earnings claims letter for you.

Claiming For Loss Of A Pension

Because of the compound nature of pension investments, being made to miss pension payments can damage how your much your pension is worth later down the line even for a short amount of time.

All in all if you miss your pension payments due to an illness or injury, this will potentially multiply your loss of earnings later down the line. If you are injured or made ill by an accident that was not your fault and are caused to miss pension payments by being able to work, you should be able to claim compensation for your lost income in the future. The effects of any payments to your pension that you have not been able to make will have on your future income will be included in the schedule of loss. You will be compensated for loss of future income as part of the special damages of your compensation claim.

How Can A Solicitor Help You?

If you’re wondering how to claim for loss of earnings, you may also be wondering how can hiring a personal injury solicitor help you when you are claiming for a loss of earnings.

Firstly, a personal injury solicitor will have an in-depth knowledge of all the areas you may be owed for reimbursement. This could include your net monthly pay, bonuses, overtime pay, sick pay in lieu and holiday pay in lieu. You will also benefit from being represented by a legal professional, who understands what compensation for loss of earnings you are entitled to.

Defendants will often take advantage of a Claimant’s lack of knowledge in this area and try to ‘low ball’ them (offer too little compensation on purpose) to avoid paying them what they are actually owed. Having a solicitor represent you, will help you to avoid this situation. Thirdly, if you choose a solicitor from Accident Claims UK, in most instances there will be nothing to pay unless you win. Yes that’s right, most of our solicitors offer a no win no fee option, which means that there is no upfront or ongoing fee unless you win your claim, in which case your solicitor’s fees will be paid out of your final settlement.

How Much Loss of Earnings Compensation Can I Claim? – Updated October 2021

Whether you suffered due to a car accident or another sort of accident that wasn’t your fault, you may be entitled to claim for your subsequent loss of earnings. In addition, you may have sustained injuries, be that physical or psychological, which you may also be entitled to compensation for.

If you’re wondering how much compensation you could be entitled to for the harm you suffered, we advise against the use of online personal injury compensation calculators. Instead, we’ve provided some average payout figures below from the Judicial College Guidelines, an independent resource used for training Britain’s judges.

InjurySeverityDetailsCompensation BracketTotal work days missedTotal loss of earnings (net of taxes).
Brain or Head InjuryMinorMinimal damage with recovery within a few weeks.£2,070 to £11,980
Brain DamageLess SevereGood recovery made with return to work on the horizon.£14,380 to £40,410
Brain DamageModerate iii)£40,410 to £85,150Affects memory and concentration, as well as ability to work.
Brain DamageModerate ii)£85,150 to £140,870Results in intellectual deficit, with ability to work reduced.
Brain DamageModerate i)£140,870 to £205,580Results in severe intellectual deficit with no prospect of returning to work.
Neck InjuryMinor iii)Up to £2,300Full recovery in 3 months.
Neck InjuryMinor ii)£2,300 to £4,080Full recovery in 3 months - 1 year.
Neck InjuryMinor i)£4,080 to £7,410Full recovery in 2 years.
Mental Anguish£4,380Fear of impending death.

No Win No Fee Compensation Claims For Loss Of Earnings

If you have experienced a loss of income due to an accident that was not your fault, we understand that you have probably already been through a financially challenging time. This means that you may lack, or be understandably reluctant to put up the funds to pay an upfront solicitor’s fee. In this section, we’ll explain how if you’re wondering how to claim for loss of earnings, a No Win No Fee agreement can help.

Fortunately, Claims Advice UK offers the option to make a no win no fee compensation claim. This means that you won’t have to pay a solicitor’s fee until if and when you win your claim. Your fee will come out of your final settlement (your loss of earnings award will be special damage, you will also be awarded a larger sum in general damages for your injuries, pain and suffering caused by your accident). This is the less financially risky and stressful way to make a personal injury claim for many claimants. Contact Accident Claims UK for your free legal consultation. If we think you have a legitimate claim, we will proceed with your claim right away.

Why Choose Accident Claims UK When Looking How To Claim For Loss Of Earnings?

Accident Claims UK is the personal injury solicitors that have your back. Wherever you are based, we can provide you with a top personal injury solicitor who will relentlessly fight your claim to get you the maximum amount of compensation you are owed. Many of our solicitors have over three decades of experience winning compensation for victims who have suffered a loss of pay due to their injuries, so you’re bound to be in good hands. We will keep you up to date throughout the process, and take care to explain all the relevant legal jargon to you.

how to claim for loss of earnings compensation

how to claim for loss of earnings compensation

We offer a free impartial legal consultation for anyone wondering how to claim for loss of earnings, including to claim compensation for loss of earnings. Call us today and we if you have a legitimate claim to make, we can give you an accurate estimation of what your claim could be worth and will find the right solicitor to handle your claim. Call us today on 0800 073 8801 to get started, or fill out our online loss of earnings claim form. We’re looking forward to hearing from you.

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How to claim for loss of earnings compensation FAQs

Can you sue for loss of income?

If you are injured due to a third party’s negligent actions, you may have to take time off to recover. During this time, your employer is not lawfully required to pay you sick pay. However, if you happen to lose out on earnings during this time, you could claim them back.

What are the 3 types of damages?

When making a compensation claim, it is important to note that there are three types of damages. These damages include:

  • Economic Damages.
  • Neoeconomic Damages
  • Punitive Damages.

How are damages compensated in personal injury claims?

There are 2 heads of damage: general damages and special damages. General damages compensate for physical and psychological harm, whereas special damages compensate for financial losses, including loss of earnings.

Must I provide evidence to support my claim?

In order to make a compensation claim, you must provide evidence to support your case. Thankfully, there are various forms of evidence you can supply, such as:

  • Photographic evidence – take photographs of the accident cause. This can be used to support your case.
  • Financial documentation –  keep documents such as payslips and receipts to support your case.
  • Medical evidence –  if you seek medical attention after a workplace accident, you can request your medical file at a later date to support your case.
  • Witness statement – it is important to collect the contact information of witnesses of the accident. Your solicitor may contact them at a later date to support your case.

Using a solicitor to claim loss of earnings

When you claim loss of earnings, you might think you just need to send some evidence to the defendant’s legal team. However, before they even consider your earnings, they might try to deny any wrongdoing at all. Alternatively, they could suggest that although they admit liability for the accident, that their client caused all of your injuries. So, as you can see, before you even claim loss of earnings, you might have an uphill battle to win your case.

That’s why we believe you should have a personal injury solicitor on your side. Using their legal acumen and experience, your solicitor can fight your corner for you. They’ll try to ensure that ample evidence exists so that the defendant can’t deny liability for what happened or how you were injured. If that can be established, the case can move on to look at the financial costs such as loss of earnings.

Even at this stage, an insurer may try to settle quickly by offering a low settlement amount. Don’t worry though, if your case is accepted by one of our solicitors, they’ll do all they can to try and make sure that if you claim loss of earnings, the maximum settlement amount is paid.

How do I know if I have grounds to make a claim?

We can tell you whether you could be entitled to compensation by getting a free consultation with us today. However, typically, you can establish third-party negligence using the following criteria:

  1. A third party owed you a duty of care
  2. Which they failed to uphold
  3. And you subsequently suffered

How much could I be entitled to?

Without assessing your unique circumstances, it’s impossible to say, as claims are valued on a case-by-case basis. Please get in touch today for your free consultation and payout estimate.

How are claims valued?

As mentioned above, general damages and special damages are the two heads of damage compensated as part of a personal injury claim. In terms of their value, the more severe a claimant’s suffering, the more compensation they’ll likely be entitled to for it.

Do I need to get a lawyer in order to make a claim?

Despite the fact that there is no legal requirement to have a lawyer, acquiring one to handle your case could not only ease the claims process for you but ensure you get the maximum compensation you deserve.

Can I make loss of earnings claims for criminal injuries?

While the process of claiming compensation for criminal injuries is somewhat similar to making a personal injury claim, in that you submit evidence and receive compensation, some of the special damages you could claim would not be the same as they would with another type of claim.

This is because CICA claims are handled in accordance with the Criminal Injuries Compensation rules. In such cases, your injuries would need to be so severe that you were totally unable to take on paid work, or had very limited capacity to work. This would mean you’d only have, at most, the ability to work for a few hours of a week because of your injuries.

What evidence do I need for criminal injury loss of earnings payouts?

You’d need to evidence that you were in paid work at the time the incident occurred, or that your work history is established in most cases. If you do not have an established work history, you’d need to evidence that you had a good reason for this, which could be because you were a full time student. Or it could be that you had caring responsibilities. In addition, your loss of earnings must have lasted more than 28 weeks. Usually, the 28 weeks would run concurrently from the injury date. Unfortunately, you could not receive loss of earnings for the initial 28 weeks. Usually, the loss of earnings would be paid at the rate of statutory sick pay, and not precisely what you would have earned.

Thank you for taking the time to read our guide on how to claim for loss of earnings compensation.