Self Employed Mortgage

pocket8s

Hi All.

I am currently trading in my 4th year as a letting agency. I am looking to buy my council house. As i can now get a good discount!

1st Year i made a proft of £3000 turnover of 15k
2nd Year Showed a loss of £900 turnover of 30k
3rd Year profit of £5000 turnover of 36k
4th Year not ending til april currently turned over 45k with approx profit of 10k.

As with any employed business i am putting through as much expenses as possible to make my tax bill as low as possible. I also dont want to be vat registered as this will increase my prices and make me less competitive!

Bottom line is i earn more than iv showed (as with a lot of self employed people) . In the coming weeks i will be earning approx 10k profit in commissions and refurbishments i am doing. I dont really want to put these through my books as this will take me over the threshold to be registered for vat! (I can be paid to my personal account). I would also like to use this 10k as a deposit.

The house can be bought for around £85,000. With the 10k above i can find another 5k if needed for deposit.

With the profits showed above would i struggle for a mortgage?
I am best putting this money into my business account, so i will then show a LOT more profit this year? But will have a big tax bill and possible have to regsiter for vat

Thanks In advance

VIGILANT22

Maybe your first investment should be a good accountant!

_Andy_

Not going to happen with those net profit figures.

roadster

VIGILANT22 wrote: »

Maybe your first investment should be a good accountant!

I totally agree, i have been self emloyed for more than 15 years and a good accountant will be able to help and if not point you in the right direction.

Tuscan

i would be very care full about sticking 10k in your personal account without being able to show were it came from. if the vat or tax man wants to take a look at you and find that how will you explain it. you really dont want to mess with the Vat man.

nothing wrong with a bit of cash work and sticking it in your pocket, but anything with a paper trail needs putting through the books.

ps ive had my own business for 20yrs..

your year 2 and 3 dont stack up. how did that happen. on year 2 were you spending out of you business account but not paying the profit in? or did you buy some thing big to make a lose..