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Mortgage for LLP director
Nike79
Posts: 67 Forumite
Hello there,
I am an employee of the LLP soon to become a director of this LLP. I will not be drawing dividents and will be drawing regular monthly salary. Am i going to have more problems obtaining a mortgage as a director of LLP then a mere employee?
I know its harder to get a mortgage for self employed but as far as im getting it i wont be a self employed as i will be employed by my company.
Pls help!
I am an employee of the LLP soon to become a director of this LLP. I will not be drawing dividents and will be drawing regular monthly salary. Am i going to have more problems obtaining a mortgage as a director of LLP then a mere employee?
I know its harder to get a mortgage for self employed but as far as im getting it i wont be a self employed as i will be employed by my company.
Pls help!
0
Comments
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self employed/owner/director of a ltd or llp are treated in the same way.
As a self employed person (even if you are only drawing a wage) assuming you will own a 20% plus share you would need to provide upto 3 years worth of accounts.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
self employed/owner/director of a ltd or llp are treated in the same way.
As a self employed person (even if you are only drawing a wage) assuming you will own a 20% plus share you would need to provide upto 3 years worth of accounts.
Will it also mean i need a larger deposits and get higher rates?
I am not going to be a shareholder of the company just a director. How does it change the situation?0 -
There are no shareholders with llp's anyway - sorry was just trying to keep it simple but probably caused more confusion.
Do you effectively own any of the business? Or is the director a job title only?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Yep not shareholders ...meant there are will be other partners and im appointed director. I will bemanaging day to day business and accounts there is no other employees except for me. We thought of drawing an employment contract if it helps, im just confused by how i will be classified by the mortgage purposes...0
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AFAIK you are an employee and assessable under Schedule E, not Schedule D.
Those who own the business, the equity partners, would be classed as self-employed and assessable under Schedule D.
HMRC will not accept someone being self-employed if they are clearly employed by a single employer with a single source of income, unless you work in particular industries. If in doubt, ask HMRC.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
....I am an employee of the LLP soon to become a director of this LLP. ...
A statement that has potential for confusion.
Some LLPs use the word 'director' to mean 'partner', others use the the word 'director' to mean 'senior salaried employee who isn't a partner'. You need to be clear which you are.0
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