Bank banks changing self employed Ltd mortgage critera... SA302 notes

apositivethinkingcat

Simon: I was told categorically that whether I removed money from the company or not it counted. The way they work out the mortgages changed this month. This was unfortunate and not anyone's error.

I draw out what I need and leave the rest in so months where I either: A) have no work for some reason Am ill or C) take a holiday I still get the same amount of money each month to guarantee I can pay mortgage and bills even if I am ill for months

Self employment is not about avoiding tax or getting benefits. Don't let the few who spoil things for others colour your vision to every small business.

This post was to let people know the rules have changed for the main lenders - It is a bit of a kicker that it's biting a lot of people in the behinds for running their business in a way we were told by our banks was the most sensible, by keeping profit in the company for times where work is slow, the fact I do that is why I can in fact afford my mortgage without any worries - ah well.

I'm talking to a few brokers next week - hopefully smaller ones will be willing to look at all my books and accounts rather than just one piece of easy to read paper

Wish me luck!

apositivethinkingcat

Thrugelmir wrote: »

So the £60k doesn't reflect the profit made in the period. As includes a withdrawl of retained earnings from prior years. So wouldn't reflect an accurate picture.

hear what you are saying - I was just explaining to other people that even if they earn a load more in the next few years and take it all out (even if they didn't remove any previous retained profit this is true) the rules will still mean leaving profit in the company 3 years ago pulls their figures down and skews the picture.

It is one of those frustrating things when I am overpaying a mortgage and the bank tells me I clearly cannot afford anywhere near as much as I am already overpaying on... in favour of ease they are ignoring common sense or personalised service with their exisiting customers. If the bank said I couldn't have any more that is fair enough - saying I cannot afford the loan I have had for years? Well that is just not true

Looking back, rather than leave money in the company I should have taken it all out and stuck it into regular savings accounts and when I got ill I had used my savings rather than drawing wages. I thought regular uninterrupted income was important (I believe it was last year actually) but now things are different.

Can I borrow a Tardis???

^_^

apositivethinkingcat

leveller2911 wrote: »

apositivethinkingcat wrote: »

Thats been the rule for years when claiming tax credits.

Sole trader Ltd companies can pay themselves minimum wage, leave the rest in the company and claim maximum tax credits.

Personally having been self employed for 25yrs and know many sole trader Ltd companies its about time they were looked into whether its Tax ,benefits or mortgages.

Sole Trader Ltd where it is one person with no intention to turn it into an actual business are a completely different matter. I'm not talking about that situation, I'm talking about actual small businesses with one Director who owns 100% shares. Good to clarify though