Sourcing deposit - dodgy?

Cornucopia

The employer could simply buy the deposit proportion of the property with you, and you could pay rent on the proportion he owns. You could buy it back from him over a period of time.

Thrugelmir

Cornucopia wrote: »

The employer could simply buy the deposit proportion of the property with you, and you could pay rent on the proportion he owns. You could buy it back from him over a period of time.

I doubt the employer would wish to be involved to this degree.

cosmicbeard

Good idea but I doubt he would either. Employer just wants to help out by means of a interest free loan of <=20k (I think it's called Beneficial Loans or something and goes through HMRC all above board).

My problem is that I can't use a loan as deposit. But I would really like to save the three or so years rent that I would be paying (over 20k) if I were to decline the loan and save deposit while renting.

I have no intention of putting through a fraudulent application as it will only come back and bite me in the !!! if it got through. No real desire to avoid tax either, I just wish I could use the loan as deposit somehow.

Zero_Sum

How about this as idea. The company give you shares in the company as a bonus or whatever. They then buy them back from you. You then take said pay cut, to pay for it.

Cornucopia

Sounds like the simplest option is for the employer to lend you the money directly. I suppose your parents could offer a guarantee or something.

The difficulty for tax is shuffling the money around like the original proposal.

Zero_Sum

Cornucopia wrote: »

Sounds like the simplest option is for the employer to lend you the money directly. I suppose your parents could offer a guarantee or something.

The difficulty for tax is shuffling the money around like the original proposal.

problem is that mortgage companies don't like loans for deposits.
So you'd have to lie about where the deposit has come from.

cosmicbeard

Zero Sums idea about company shares is interesting. If i received/sold the shares are they subject to tax/ni/student loans?

Zero_Sum

cosmicbeard wrote: »

Zero Sums idea about company shares is interesting. If i received/sold the shares are they subject to tax/ni/student loans?

I'm no expert, but there won't be any NI or Student loand deductions. Tax will be capital gains, which you'll have an £11k allowance

Thrugelmir

cosmicbeard wrote: »

Zero Sums idea about company shares is interesting. If i received/sold the shares are they subject to tax/ni/student loans?

Issuing and gifting shares in a Company. Is not a straightforward and cost free process.

Suggest you concentrate on basic ideas. Such as how to save more.....

cosmicbeard

I've done the maths and could just about save 20k in 3 years. But i would spend an additional 20k on rent during that time. That's the plan I've been working on. Now that this loan has been offered it makes sense to investigate every avenue to get a mortgage now and use that rent of 20k to pay off the mortgage instead...if possible.