Mortgage employer checks

Natty_R

Hi I'm a nanny and also do other freelance work so am registered self employed. As we are wanting to apply for a mortgage soon I asked the family that I nanny for if I could switch to employed to make my application more straight forward and even offered to pay the employer costs involved with this. At first it was agreed but now it seems they are getting cold feet, I think there is an issue with regards to the income that my employer actually earns vs what she declares to HMRC !! ( She's works for herself too !!) I think based on what she declares she earns she wouldn't realistically be able to afford to pay me what she does.

My question is what employer checks will a mortgage company make on an employer and does the info get logged anywhere else.

If I have payslips and bank statements that tally and she confirms that she employs me is this as far as it will go or will they want proof from her e.g that she is a registered employer with HMRC etc etc . Just want to put her mind at ease that its me they are interested in and not her or could she get into trouble somewhere down the line. Don't want to have to find another job just to apply for a mortgage. hope someone can help.

Simon_gloster

There are all sorts of things that could go badly wrong here.

Your 'employer' as you say would need to register as an employer, draw up contracts, offer you annual leave, pay sick pay, the list goes on. I'm not suprised they are getting cold feet. Risking themselves so you could get a mortgage......thats probably whats putting them off.

Also its what they then declare to HMRC and false info could land them in trouble.

If they did go ahead with it, and wrote a phoney contract, they woud then tell a lender you are employed etc when you are not. That is fraud. A lender would offer legally binding contract based on all info received.

Anyway a lender would gererally want 3 yrs work history.



I've said it before and i'll say it again, there are many ways people can find out things without you knowing. If you do decide to do it I hope you have a lot of money set aside and get used to the taste of porride.

I'm not having a go, but its so wrong what you have discussed with them. Next you'll tell us you declare as little income to the taxman so you pay less tax.

GMS

What your employer declares for earnings is of no interest to you.

What you are proposing is mortgage fraud. You are self employed and as a result the lender would want to see 2 years accounts as a minimum, possibly 3. As you have figured out it is easier to be employed.

Why can you not prove your income as self employed?

Natty_R

ooh what harsh replies !! i think i've been misunderstood.
My nanny job is the only childcare related work I do and as such I (think) I really should be employed by the family anyway, they asked me if i would work for them on a self employed basis as i was already self employed for my other freelance work and I agreed to so ( which in hindsight I probably shouldn't have) incidentally I wasn't aware it was legal to be employed and self employed at the same time. In fact in previous years I have done both PAYE work and then declared my self employed income on my tax return .. not sure whats different in this instance.

My freelance work is dwindling and the bulk of my income is from the nanny work and I know it would be easier to get a mortgage if I was employed hence why i've asked them to change my terms and adjust my salary accordingly. my intention is not to commit mortgage fraud but to ask them to take me on as Employed ( as most nannies are )

I'm asking they they switch me over legitimately not lie about it .. at what point did I say I wanted a phoney contract ?!?

All i want to do is legitimately change my employment status with them ... again not sure how this is illegal / mortgage fraud.

What prompted my question was that if they did do the switch and take me on as PAYE and she as i suspect is not declaring her real income on her tax returns could HMRC tally this up with her employer regstration details and tax return and make assumptions about how much she is really earning ...

Thats what she has asked me in a round about way.

antrobus

Natty_R wrote: »

...

I'm asking they they switch me over legitimately not lie about it .. at what point did I say I wanted a phoney contract ?!?

All i want to do is legitimately change my employment status with them ... again not sure how this is illegal / mortgage fraud.

It isn't. Some people were just jumping to conclusions. If asked, I imagine HMRC would regard you as being employed as a nanny in any case.

Natty_R wrote: »

What prompted my question was that if they did do the switch and take me on as PAYE and she as i suspect is not declaring her real income on her tax returns could HMRC tally this up with her employer regstration details and tax return and make assumptions about how much she is really earning ...

Yes they could. Whether they actually would do so is another question.

DVardysShadow

antrobus wrote: »

It isn't. Some people were just jumping to conclusions.

Yes, I suspect there is a side game going on where people get points for suggesting that something is mortgage fraud.