Mortgage for Unprovable Income

SeduLOUs

drum-uk wrote: »

Part of my reason for intermittent tax returns is, my book keeping skills are not the best.

It has been suggested that going Limited, paying myself with PAYE, and "starting afresh" maybe the way to go, does anybody think this might be a good idea?

Starting afresh is all well and good until HMRC catch up with you. If you can't prove your income, they will guess what you income was and send you the tax bill.

You need to sort it out. If you can't, pay someone who can.

drum-uk

kingstreet wrote: »

Exactly the same.

Both treated as self-employed and typically both expected to evidence two years earnings via HMRC SA302s.

Thanks, that useful information, so I know there probably isn't much I can do this year, but if I get my finances straight, and another years SA filed, then I have a target. I guess another 12months savings for deposit won't do any harm either.

SeduLOUs

drum-uk wrote: »

Thanks, that useful information, so I know there probably isn't much I can do this year, but if I get my finances straight, and another years SA filed, then I have a target. I guess another 12months savings for deposit won't do any harm either.

There is something you can do. Go back and file your tax returns properly. You will then have appropriate proof of income, but perhaps not as much of a deposit!

Not doing so is tax evasion, which is both legally and morally wrong and for which I have absolutely no sympathy. Not understanding book-keeping is absolutely no excuse.

The penalties for failure to submit are pretty severe, but penalties are lower if you come clean rather than waiting to get caught.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/367458/cc-fs18a_1_.pdf

drum-uk

SeduLOUs wrote: »

There is something you can do. Go back and file your tax returns properly. You will then have appropriate proof of income, but perhaps not as much of a deposit!

Not doing so is tax evasion, which is both legally and morally wrong and for which I have absolutely no sympathy. Not understanding book-keeping is absolutely no excuse.

The penalties for failure to submit are pretty severe, but HMRC are likely to be more sympathetic if you come clean rather than wait to get caught.

Don't get me wrong, I'm not suggesting I forget my past lapses, more that I aim to sort them out over the next 12months, hopefully, that way I can still increase my deposit slightly rather than, take a big hit on it, and then try and apply for a mortgage.

ACG

You can file tax returns after 5th or 6th April (I always forget which) for the previous year.

So if you have 1 tax return already, file another on the 6th April. Request an SA302 for both years (takes about 2 weeks) and you will have a decent chunk of lenders available to you - certainly a couple of high street lenders.

Im sure you can imagine how this reads to everyone else. You have basically been tax dodging - whether intentional or not. You might want to start doing it properly going forward. If the tax man sees you have filed accounts, you have not filed them and then filed them again, they may start to get suspicious and you could end up HMRC going through your statements with a hefty fine at the end of it. For what it is, just get an accountant - £200 to do it for you. Probably less if you shop around - and its tax deductable.

barba

The OP's IP address has been noted and recorded.

kingstreet

barba wrote: »

The OP's IP address has been noted and recorded.

Well done.

What do you plan to do with it...?

leveller2911

I find it hard to believe that HMRC haven't been chasing the OP for the self assessments. When a person submits a SA one year and doesn't file one the following year it gets flagged up on the system.

Something not right imo.........

kingstreet

That's what I thought...

He'd get a late filing charge if he didn't complete a "nil return" by 31/1 online each year...

Thrugelmir

drum-uk wrote: »

Part of my reason for intermittent tax returns is, my book keeping skills are not the best.

It has been suggested that going Limited, paying myself with PAYE, and "starting afresh" maybe the way to go, does anybody think this might be a good idea?

Find yourself a good accountant. As there'll be some negotiation involved. HMRC aren't unknown for accepting a one off settlement of historic liabilities.