20 year old wanting to buy new build 170k - £230k please help

Georgiegirl256

Of course your website earnings will be taxable....

saverbuyer

Get back under your bridge.

Senior_Paper_Monitor

Your website income is taxable - HMRC have a dedicated team of people looking for website earners and checking if they are declaring.

Lenders will only consider correctly declared income.

There will be several people in the process of your application who will see your bank statements who will also have a legal reponsibility to 'dobb you in' for tax evasion.

Lenders have a link (2 way) to HMRC giving them the ability to compare declared income with reported income !

Patchwork_Girl

I do similar work to you and would recommend that you sort out your tax immediately. Online income must be declared - even if it is not enough to attract any tax at all.

As far as the mortgage goes I have had some problems with being partly self-employed - do not be surprised if most lenders refuse to take your online earnings into account until you have a full 2 or 3 years accounts to prove your income.

Your best option might be to get your accounts in order, sit tight for another year and apply from a stronger position with two years account and a good deposit behind you.

Thrugelmir

kinh wrote: »

I earn on average, £3000 a month online through Google Adsense for my websites, (being doing so for past year.

Then you expect contact from the HMRC at some point. As Google will provide them with details of the amounts paid out. HMRC will cross check this against declared earnings on self assessment returns.

kwmlondon

I recommend what I do which is pull a big bag of magic out of my pixie box at the bottom of the bed. Rub it and a giant genie will pop out and answer all my stupid questions. Job done.

WestonDave

Bad news for you - £3000 per month from Google is income and will be subject to income tax less any allowable business expenses. You thinking you don't have a business does not change the above. Assuming that you use your personal allowances at Sainsbury's and any 40% liability is offset by expenses, you are looking at a tax bill alone of £7k+, on top of which you will need to have paid class 2 NI contributions, class 4 NI of around £3k, plus any penalties and interest for failing to comply with registration and returns. That £10k you owe will just about wipe out the 5% deposit funds you have, so on that basis I wouldn't bother troubling a broker!

kwmlondon

Trol-lol-lol-lol-lol!!!!

notanewuser

WestonDave wrote: »

Bad news for you - £3000 per month from Google is income and will be subject to income tax less any allowable business expenses. You thinking you don't have a business does not change the above. Assuming that you use your personal allowances at Sainsbury's and any 40% liability is offset by expenses, you are looking at a tax bill alone of £7k+, on top of which you will need to have paid class 2 NI contributions, class 4 NI of around £3k, plus any penalties and interest for failing to comply with registration and returns. That £10k you owe will just about wipe out the 5% deposit funds you have, so on that basis I wouldn't bother troubling a broker!

I did a rough sum of £36k per year, plus £15k salary. Times 3 years = £153k. Take off personal allowances of £7.5k, £8k and £8.5k =£129k.

Times 20% tax is £25.8k. Plus NI, plus fines.

Quite a lot more than your £7k estimate.

ILW

OP gone a bit quiet. Probably at school.