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

loss of earnings Have 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). 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. 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

Personal injuries unfortunately almost always result in a financial loss for the sufferer. This happens firstly because the injured person usually incurs additional expenses as a result of their illness or injury, for example, medical expenses, transport expenses and the expense of receiving at home care. On top of this, 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 in detail at loss of income or earnings definitions and, how loss of income affect the employed and self-employed differently. We will inform you about the best way 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 in the UK, judge whether or not you have a legitimate claim to make, estimate how much compensation you can claim and 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 on a temporary basis, 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 on a permanent basis. 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.

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 be able to 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

If you have had to miss time at work, you may be 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. In the same period, you may have missed out on other work-related benefits such as monetary bonuses, or overtime pay. 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 and works for an employer. It is also 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
  • 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. In many cases, your accountant will be able to help you prepare and gather evidence to make your compensation claim for lost pay and income as a self-employed worker.

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

If you wish to claim compensation for loss of earnings, you will only be able to claim your net monthly pay (wages or salary) in compensation. Net monthly pay refers 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 there are certain things you will have to prove, to have a legitimate claim. Firstly you will need to prove that the accident that caused your loss of earnings 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 was no longer possible for you to go back to work. To do this, you will need to provide medical evidence such as doctor’s report, X rays or text 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 earned had you been able to work during that time.

How Do I Prove Loss Of Earnings?

If you wish to claim for loss of earnings, 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 then 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. Your personal injury solicitor, as provided by Accident Claims UK, 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, even for a short amount of time, can damage how your much your pension is worth later down the line. 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 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, and you will be compensated for loss of future income as part of the special damages part of your compensation claim.

How Can A Solicitor Help You?

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 where you may be owed a 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?

Whether you suffered a loss of pay or income due to a car accident, or another sort of accident that wasn’t your fault then you may be entitled to claim for your loss of earnings. We have provided a loss of earnings calculator below, to help you estimate how much compensation you could potentially claim for loss of earnings. Please note that this loss of earnings calculator cannot calculate your future lost income. It only takes into to account your net monthly salary (or wage) and your projected yearly pay. It does not take into account missed pension payments, or loss of benefits such as holiday pay, sick pay and overtime pay.

Example monthWages before tax, also known as net wages. Net annual earnings/ wagesNet daily earnings calculated for 40 hour weekTotal work days missedTotal loss of earnings (net of taxes).
January£1,600.00£20,400.00£78.4615 Days£1,176.92
February£1,700.00Calculated above for a 12 x month average wage.Calculated above as an example net yearly earnings / 52 weeks / 5 daysCalculated above as as 15 work days lost x example average daily earnings.
Average Monthly Income (wages or salary)£1,700.00

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

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 fight your claim relentlessly to get you the maximum amount of compensation you are owed. Many of our solicitor’s 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.

We offer a free impartial legal consultation for anyone looking to make an accident claim, 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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