Lender requires Payslips

dugma1975

I wonder if someone can advise or help.

I am in the process of applying for a mortgage. I have received the DIP and now have processed the full application.

My partner is employed by a very small company and is the only employee on the books. Her annual salary is very low and is under the threshold of paying any tax or NI contributions.

The accountants of the company she is employed by state that they cannot provide her with a payslip as 1) she is the only employee 2) her salary is too low to run through a PAYE system.

What they have said they have done is provide us with a letter from the accountants confirming her:
1) Annual Salary
2) When she started employment
3) Listing out all salary payments
4) Reason as to why they cannot provide payslips

The lender is the Woolwich.

Does anyone know or experienced either a similar situation and if you think the lender would accept the letter from the accountant as confirmation of her salary payments.

If not can anyone suggest another way we can generate a payslip for lender to accept

Many thanks for your help in advance

purdyoaten

I have prepared a similar letter on many occasions to mortgage companies. They also like ' there is no reason known to me why that employment should not continue for the foreseeable future'

dugma1975

Hi purdyoaten thanks for the reply.

Are you saying then that the lender would accept the letter?

dugma1975

Hi guys

It would be great if someone can re-assure me with what we are having to do.

Has any brokers or applies ever dealt with my situation above.

This is the 3rd time in 3 years we have tried to move and each time it has fallen on its face. I just don't want the mortgage to prevent us moving forward!

So please advise

Thanks in advance

GMS

I thought it was a legal requirement to issue payslips. Now all payroll needs to be reported to HMRC anyway as far as I know.

Are you paid in cash?

Not trying to be sarcastic here but if you have encountered this issue before then why not ascertain which lender would accept the situation prior to application?

Thrugelmir

GMS wrote: »

I thought it was a legal requirement to issue payslips.

Certainly is.

Payslip legislation

The legal issues around payslips

Section 8 of the Employment Rights Act 1996 says: “An employee has the right to be given by his employer, at or before the time at which any payment of wages or salary is made to him, a written itemised pay statement.”

A number of issues are raised by the right to an “itemised pay statement.”

The “written” pay slip must be “given” to the employee by the employer.

The responsibility is on the employer to make pay slips available to the employee. If the employee does not know where to find the payslip or has no computer access to it, then it has not been “given” to the employee. This must be done “at or before” the time when the payment is made.

Businesses need to ensure that all employees can actually see their wage slips on payday if they wish to do so.

When the legislation was originally devised, this referred to a hand-written or typed piece of paper. Many employees will now be happy just to read their wage slip details on-screen and file the document away somewhere.

The statutory requirements cannot be ignored because the penalties can be severe.

The objective of the legislation is to ensure that employees are aware of all of the deductions that have been made from their pay at each pay day.

If they are unable to see those details on pay day they can make a complaint to an employment tribunal.

If the tribunal considers that the statutory requirements have not been met in respect of their pay slips, then the employer can be required to repay to the employee up to 100% of all of the unnotified deductions made from the employee’s pay in the 13 weeks prior to the date of the complaint, even if they were legitimate or statutory deductions.

jacobtheamish

Woolwich/Barclays can be quite arsey about ticking boxes. Nationwide and Santander/Abbey are more flexible. Although I would push the employer to provide payslips as they should including annual P60's

dugma1975

GMS wrote: »

I thought it was a legal requirement to issue payslips. Now all payroll needs to be reported to HMRC anyway as far as I know.

Are you paid in cash?

Not trying to be sarcastic here but if you have encountered this issue before then why not ascertain which lender would accept the situation prior to application?

We have not encountered this problem before. The other 2 times had nothing to do with payslips as my partner was is in a different job. This is a new part time job she is doing! We only found out after dip was approved that employer cannot provide payslips as ah said she was arranging payslips.

No she is not paid in cash!