Self employed/ lots of overtime

Mattygroves2

Davidoff wrote: »

Yes, the business pays these bills. Infact, the business pays ALL of our bills, hence such a low net profit. It is not about tax efficiency but more a question of controlling income in order to never ever earn more than £16,910 each year (today's market)

Once you're living in a property you own you will only be able to claim part of the utility bills against tax usually based on the proportion of the property actually used for the business in both terms of time and space. If you try and claim the whole cost you are opening yourself up to CGT and also business rates as you are effectively saying it is a commercial premises.

Re self employed I suspect it will be easier to prove your GFs self employed income rather than your overtime. SA302s for the last 3 years should do it for her.

Davidoff

matty, thanks for your input. We are not overly interested in tax deductible expenses. We find it easier to make the business liable for all of our "expenses".


Can any mortgage advisors contribute opinion on size of loan that may be offered.

Mattygroves2

Davidoff wrote: »

matty, thanks for your input. We are not overly interested in tax deductible expenses. We find it easier to make the business liable for all of our "expenses".

Good luck with HMRC when they start to wonder about the size of the expenses if you take that attitude as it is clearly against the tax rules. No lender will accept that all your expenses are covered by the business so will allow for a reasonable amount when working out your affordability.

Davidoff

Edi, perhaps I own 50% of the business?

Davidoff

Is anyone interested in contributing to the original query? How is overtime viewed by mortgage lenders?

leveller2911

Davidoff wrote: »

Edi, perhaps I own 50% of the business?

But earlier you stated your partner was a self employed sole trader and you were employed working away....

I've been self employed for over 25 years so please educate me how you/she can legally claim 100% of her living expenses through her business...Seriously David ,I'm happy to be educated about running business.

As the saying goes "we never stop learning".

Davidoff

No one is claiming anything, we keep her income below the threshold for repaying student loan. As if I needed to spell that out.

HappyMJ

The overtime is not always accepted even if very regular. It depends on the lender. Some might take some into account some take none and some take all.

Davidoff

Thank you MJ

leveller2911

Davidoff wrote: »

No one is claiming anything, we keep her income below the threshold for repaying student loan. As if I needed to spell that out.

Keeping her income below the threshold at which she would start paying back her student loan has nothing whatsoever to do with her claiming all of her utility bills and living expenses against her tax liability.

Sooner or later she will be flagged up on HMRC system and she will be investigated and that can be squeeky bum time...;)