Can I get mortgage if in receipt of tax credits?

princessdon

If you are self employed - but working for a company 100% of that SE then YOU must pay 2 sets of NI. This is because companies would not put employees on roll and avoid paying NI etc as they were SE.

Therefore they changed the rules and unless you can prove you are genuinely self employed (Ie work for others, can send someone else if sick etc) you are responsible for both sets of NI.

You have registered with HMRC - have they confirmed in writing with your number etc? And no you can't wait until the end of the year, you must as a business be accounting as you go along (you can claim mileage to and from your family members business etc) but have to have VAT receipts from petrol to cover these periods.

How this relates to a mortgage I have no idea, but didn't want to let you go further without realising that you need to be keeping records and receipts etc and not waiting till end of year.

Newgal

Thanks princessdon. I think I've been a little naive thinking I could deal with it at the end of the tax year. I'm going to have to look into it and get sorted ASAP.

Does anyone know if I could get the mortgage with the rest of the income ie £13000 from employment and tax credits alone? Or is that just too low?

davenport151

As people have mentioned tax credits are taken into account but child benefit is not so this will need to be taken from the equation. Also be careful with this as according to circumstances tax credits are paid based on the previous years income - as i'm sure you know.,so any change may see you well off one year and struggling the next.

froslass

Halifax take child benefit into account, I know because I asked them.

leveller2911

Newgal wrote: »

Looking for some advice on whether I could get a mortgage.

Circumstances are quite tricky: I work part time and earn just £8000 however that is bumped up by tax credits by about £10,000 then add child benefit and I'm up to almost 20,000.



Memo to myself, give up working 60hrs a week and go part time and get £10k Tax credits ...........

CBR600F_2

I'm so happy that not only will I be subsidising the upbringing of your kids, but in all likelyhood will be subsidising your mortgage too. It gives me such a warm feeling in my stomach that it almost makes up for having to scrutinise every penny I spend.

Fiddlestick

ACG wrote: »

Yes you would get a mortgage - do you have a figure in mind you were looking for?

The OP receives £12,000 a year from the taxpayer and that's counted as "income" for the purposes of obtaining a mortgage?

Jesus.

I'm clearly doing something wrong.

ACG

I hate it when people have kids and claim just as much as anyone who works, however the OP has 2 jobs and doesnt come across as work shy or someone off the Jeremy Kyle show.
In the OP she has said shes divorced so without knowing the full history - which i dont think the OP needs to disclose on an open forum - how can you have a go?

Have you never been in a position where you have needed help and support? Ive had to claim the dole for 6 months which i hated but since then im sure ive more than paid back what ive claimed 10 times over.

If she was claiming £20k worth of benefits with 4 kids and not working with no intention of doing then i would be very reluctant to give any help at all but that isnt the case.

Simon_gloster

Take the £5000 income out of the equation as it seems its not provable from a lenders point of view and you do have, as you say £13-£15k. And thats from lendera that use 100% of them. Most entertain around 60% of other income.

On 15k, lets say 2 children. At most a mortgage of 45k, maybe a tad more but not 70k.

Also, should your benefits stop, a drop in income could have big impact. Lenders do these mortgagea, they are not keen on them, and very soon some lenders arw removing benefits from their calculations.

leveller2911

ACG wrote: »

I hate it when people have kids and claim just as much as anyone who works, however the OP has 2 jobs and doesnt come across as work shy or someone off the Jeremy Kyle show.

And receives £500 per month in her bank from working for a family member and yet doesn't know/made no attempt to find out if they are employed or self employed.





Have you never been in a position where you have needed help and support? Ive had to claim the dole for 6 months which i hated but since then im sure ive more than paid back what ive claimed 10 times over.


Yes, I was out of work for 6 months and received nothing but my Class NI stamps paid for because my wife earnt £120 week.No one would begrudge "support" but theres a huge difference between the taxpayer "supporting" those in need via benefits and what amounts to buying them a house, or at least contributing the majority of the mortgage money.

If she was claiming £20k worth of benefits with 4 kids and not working with no intention of doing then i would be very reluctant to give any help at all but that isnt the case.

The fact remains she earns £8k a year via part time work and gets £10k (£1,000 month) tax credits and more than likely is in receipt of housing benefit and Council tax benefit on top of the £10k tax credits...

The only difference is she works part time and the fact is if she didn't work part time she wouldn't receive £10k tax credits so the idea/plan/goal is for many to work the minimum required hours to be entitled (love that word) to huge amount in benefits. To receive Tax credits they need to work minimum 16 hrs a week to qualify.

I'm sure the OP has the right idea, its muppets like me who work 60hrs a week and receive next to f *** all from the state who has it all wrong.

I guess all you mortgage guys see is £££££ signs.