80k deposit but cant get any type of Mortgage please help

Mortgage_Mark_2

citricsquid wrote: »

Thank you for the pointer. I've read a number of threads on a number of forums (accountingweb, contractoruk) and the conclusion seems to be that while these schemes are "legal" HMRC take a very dim view of them and with new Accelerated Payment Notices anyone using such a scheme is setting themselves up for a huge pain in the future when HMRC catch up to them. From what I've read the most popular/respected provider (for "normal" people) is AML and even AML users are getting very nervous, and AML only guarantee 80% take home. I read that the majority of the providers of this service will just shut up shop and leave their users entirely responsible when HMRC catch on and that AML is an outlier in that they are fighting HMRC on behalf of their users, I read that any provider offering >80% is most likely one of the shady providers and "Approved by the QC" is a red flag, which coincidentally is what bestpay claim.

Anyway it looks like I was wrong, I don't entirely agree with the "legal" definition because from what I've read HMRC do eventually catch up to people that have used these schemes and make them repay all tax with interest (I assumed "legal" to mean: it's okay, nothing can go wrong) but I guess that's just me being pedantic, I also guess it's possible a large number of the forum posters were HMRC shills trying to scare others into stop using the schemes, but who knows! I certainly wouldn't risk it but maybe the OP is less risk averse Thank you for the information!

Also relevant to the original topic at hand, someone explicitly said in one forum post that people using these schemes should not expect positive results when looking for a contractors mortgage.

Yes, that was me - unfortunately there are 'offshore schemes' and 'offshore schemes' - some are not quite so aggressive in terms of avoiding taxation as others, and as such even lenders who will consider some schemes, might have a problem with the more complex schemes.

Agree re: legal definition; many contractors have insurance for this very reason, so the risk to them is relatively low in all honesty.

JustinR1979

nospaceforbaby wrote: »

judging by your trolling probably better than yours

nospaceforbaby wrote: »

the business does around 150-180k a year in turnover with annual business costs of about 7k, the remaining revenue goes through bestpay at 90% return

All the best

Roger_Mellie_2

nospaceforbaby wrote: »

all of David Cameron`s inheritance from his dad came from an offshore account, Starbuck, Google, Amazon, Jimmy Carr, Gary Barlow they are all doing it - I worked very hard for many years and achieved absolutely nothing, kept a roof over my head that was it - now I am starting a family so I have a responsibility to provide a home etc which for me would not previously have been possible under the full tax rate.

The difference between those who you named and yourself is that they can a) afford to fight the taxman and b) afford to pay the tax demanded if they lose the battle. You cannot afford to do any of that. To them it's just a gamble for the sake of a few million quid they have spare to 'invest'. Note they don't put their entire fortune in such schemes.

Also, if you cannot make a profit under the current tax scheme then you need to reassess your business model. Making a profit is about 'risk' but you 'risk' everything to make a profit? Makes no sense.

I'm a contractor and easily make a profit. I pay myself 10k per year salary, I don't have a contract with my Ltd Co so avoid minimum wage and then I declare a dividend at the end of the month. I'm on the Flat Rate VAT scheme so collect VAT on my invoices. So my biggest outgoings are VAT and Corporation Tax which is minimised as much as possible through my expenses.

My accountant is Nixon Williams and everything I do is above board. But unlike PAYE employees, I don't get holiday pay, sick pay, pension contributions and I'm at times out of work for a month or two. But in my opinion, the risks outweigh the tax burden of PAYE employment.