setup a limited company to get 3 months wage slips for a mortgage

HappyMJ

Thrugelmir wrote: »

For the sake of your family not a route to be followed.

You will be investigated thoroughly at some point in time. Once the irregularities are discovered, which they will. The HMRC will be like a dog with a bone. The penalties these days are severe. You will incur fines filing incorrect assessment forms, be levied unpaid tax, be charged penalties on under declared tax and finally be charged interest on unpaid tax.

Once people have been through the mill I can assure you they wish they had never bothered attempting to deceive.

What route? The OP has expenses as explained of mileage at 45p per mile over 12,000 miles. However, his car might only cost 12p per mile to run. The rest is effectively a tax free profit.

There are many expenses that do not have to backed up by receipts for every penny and other expenses which most would consider personal in nature but can be claimed as a business expense such as 50% (or an appropriate proprtion of) of computer, broadband, home phone and mobile expenses. As it is a home based business a room (a portion of the rent or interest on a mortgage) and a percentage of the household bills can also be claimed as a business expense.

Thrugelmir

HappyMJ wrote: »

What route? The OP has expenses as explained of mileage at 45p per mile over 12,000 miles. However, his car might only cost 12p per mile to run. The rest is effectively a tax free profit.

Is that was the case. Do you think the HMRC would set the mileage allowance so high?

On your example a car would do 52 miles per gallon just for the petrol cost to be covered. Let alone depreciation, servicing, tyres , insurance etc.

To claim mileage you have to maintain records of all journey's made. So this will need to tie into your invoiced sales etc. So yes, its possible to benefit from a few £'s. Not enough to make a huge difference to income though.

plane_boy2000

Perhaps I'm being simplistic, but have you considered paying the 36K off your mortgage so the bank have lower exposure, and you have a better LTV?

They might be happy to transfer the mortgage to your name only under those terms

notmyrealnameuk

Dave_Ham wrote: »

Lost the plot - I'm out

Feels too much like The Matrix and I now do not know what is real and what is not...

then read ALL of the thread next time

notmyrealnameuk

jimsmillions wrote: »

You say that the lender wont let you keep on paying the mortgage by yourself? I'm not experienced in this and it seems odd but why not just keep paying anyway? What will they do refuse the money?

i did this for a over a year then my ex girlfriend needed buying out and her share was £15,000 and she also couldnt claim any unemployment benefits because the property was in her name

notmyrealnameuk

HappyMJ wrote: »

What route? The OP has expenses as explained of mileage at 45p per mile over 12,000 miles. However, his car might only cost 12p per mile to run. The rest is effectively a tax free profit.

There are many expenses that do not have to backed up by receipts for every penny and other expenses which most would consider personal in nature but can be claimed as a business expense such as 50% (or an appropriate proprtion of) of computer, broadband, home phone and mobile expenses. As it is a home based business a room (a portion of the rent or interest on a mortgage) and a percentage of the household bills can also be claimed as a business expense.

yes correct, i have lowered my mileage costs by riding a 125cc in all weather conditions as its 50% cheaper than using my car

i am looking at the prospect of not claiming any expenses in order to keep my profits on paper as high as possible which is not good but is likely that it will need to be done

notmyrealnameuk

Thrugelmir wrote: »

Is that was the case. Do you think the HMRC would set the mileage allowance so high?

On your example a car would do 52 miles per gallon just for the petrol cost to be covered. Let alone depreciation, servicing, tyres , insurance etc.

To claim mileage you have to maintain records of all journey's made. So this will need to tie into your invoiced sales etc. So yes, its possible to benefit from a few £'s. Not enough to make a huge difference to income though.

i have started keeping mileage records since 1st oct 2011, i had to estimate the mileage before so i put 12,000 and as my car, scooter and motorbike can all be proved to have done more than this by their mot's it shouldnt be a problem if queried and i may have underestimated, but i have now switched to using a 125cc scooter to keep costs down and for simplicity

notmyrealnameuk

plane_boy2000 wrote: »

Perhaps I'm being simplistic, but have you considered paying the 36K off your mortgage so the bank have lower exposure, and you have a better LTV?

They might be happy to transfer the mortgage to your name only under those terms

yes we need 120,000 after putting down the payment of 35,000 on the 155,000 we owe

notmyrealnameuk

thanks for so many replies to this post

anyone reading this in the same boat i hope it has shed some light on this issue

since posting this last week i have been made aware that obtaining a buy to let mortgage where they take some of the rental income into account could be a better option for me

we would of course have to live in the property, but there are many posts on the internet about other self employed people having to remortgage this way

GMS

notmyrealnameuk wrote: »

thanks for so many replies to this post

anyone reading this in the same boat i hope it has shed some light on this issue

since posting this last week i have been made aware that obtaining a buy to let mortgage where they take some of the rental income into account could be a better option for me

we would of course have to live in the property, but there are many posts on the internet about other self employed people having to remortgage this way

Now we are talking fraud. Don't do it.