Self-employed accounts

confused76

Hi, I wonder if anyone can help..

If someone is self-employed (sole trader) and does their own accounts (or employs a bookkeeper), is this acceptable when trying to obtain a mortgage? I have noticed that some mortgage providers ask for accounts to be prepared by accountants.

Thanks

ACG

It helps if accounts are prepared by a chartered accountant.
Some insist on it, im not sure if others dont or not.

Ive been selef employed for 6-7 months. Once it hits 12 ill be purchasing my own place. My accounts are done by a certified accountant though.

confused76

ACG wrote: »

It helps if accounts are prepared by a chartered accountant.
Some insist on it, im not sure if others dont or not.

Ive been selef employed for 6-7 months. Once it hits 12 ill be purchasing my own place. My accounts are done by a certified accountant though.

Ahh right ok...thanks very much for that x

opinions4u

Certified or chartered will make little difference.

If you've got the supporting HMRC statements (can't remember what they're called) and the rest of your application stacks up then I don't think you'll have too many problems.

But you might well find that a good accountant can save you an awful lot of money just by knowing their way around the tax system.

kingstreet

Lenders accept HMRC SA302 statements for those who do their own self assessments. You can order them from HMRC.

Thrugelmir

confused76 wrote: »

d does their own accounts (or employs a bookkeeper), is this acceptable when trying to obtain a mortgage? I have noticed that some mortgage providers ask for accounts to be prepared by accountants.

Thanks

Any issues can be resolved by an accountant to look over the latest set of accounts you've prepare and certify them. Thereby giving the lender additional confidence. May cost a couple of hundred pounds but if it enables you to obtain a mortgage will be a small price to pay.

Morgage_Confused

I do my own accounts and the SA302's were all that Barclays/Woolwich wanted. HMRC were very quick to send them aswell. I think these my be downloadable now? But then I also do my returns online.

kingstreet wrote: »

Lenders accept HMRC SA302 statements for those who do their own self assessments. You can order them from HMRC.

Ivana_Tinkle

I think it varies between lenders. Santander have accepted our SA302s, but First Direct said we'd need to have our SA302s "verified by an accountant" (after originally telling us they wouldn't accept SA302s at all, and that doing your own accounts was illegal!). We did find an accountant who, after laughing at how completely meaningless it was, was willing to do this for £80, but it was going to mean more hassle, and time off work to go and visit the accountant, and the confused conversations I'd had with First Direct hadn't exactly filled me with confidence, so we went with Santander instead.

I suspect it's all much easier if you go through a broker, though!

Thrugelmir

Ivana_Tinkle wrote: »

We did find an accountant who, after laughing at how completely meaningless it was,

Not entirely. I've known accountants decline to certify accounts.

Ivana_Tinkle

I don't think (although I could be wrong) First Direct wanted him to certify the accounts, but simply to sign the SA302s to say that they were genuine. There was certainly no suggestion that he needed to go through the accounts. But, as I say, the First Direct staff I spoke to seemed very confused about the whole thing and I felt it was likely that whatever we submitted to them was going to be wrong!

confused76

Brilliant, thanks for your help everyone! Things are clearer to me now x