Gross / Net / Expenses... what to do...?!

black_box

Hi all,

I posted this a while ago but got busy and let the thread run dry... Just posting again here a bit more concisely.

I need a total mortgage of £103K to buy out the remaining 50% of my shared ownership property, valued at £115K.

I'm a sole trader - freelancer.

I've never had an SA302, even though I've been self-employed for 8 years. I just never requested one. I'm told I'll now need to get one.

My first query is this:

2013/2014 I made £50K. I bought a lot of equipment which took my taxable income down to £15K. Much of this I claimed as expenses, rather than AIA. It won't change my tax position, but I was thinking about making an amendment to my tax return to reflect the correct amount as AIA, rather than expenses, in case that would be reflected on my SA302 as a higher income.

BUT, from what I now understand the income amount shown on the SA302 would still be the 15K, rather than the 15K plus what I was claiming as AIA, so it seems that it's not worth amending my tax return, bringing myself to the attention of HMRC etc. if it's not going to help me from an income/mortgage perspective.

The second query is what should I do now for my upcoming 2014/2015 application...

I could correctly claim another large amount of AIA for this year, but if this is going to leave me with taxable profits on the SA302 of around 15/20K again then I'm just accounting myself into a corner from a mortgage perspective (I'm looking for a mortgage of around £90K).

If I were to do my new tax return in May of this year, with no deductions, apply (and hopefully get) a mortgage in June/July, then amend my tax return with the AIA claims after that, is this illegal? Given that tax doesn't have to be paid before Jan 2016, wouldn't I be within my rights to do this?

I presume I might end up on some kind of HMRC "to watch/investigate" list though might I?

Is there no legitimate way to claim what I'm entitled for for my business (which I choose to buy, not which I'm forced to buy) and then still have a mortgage advisor/lender accept my gross amount as income? Why is it the little people have to take a hit on their expenses when the big guys don't?!!

Thanks in advance.

amnblog

Lenders want SA302 - you need to get them.


If you spent £35K on equipment for your business a Lender cannot expect to consider the same 35K as income.

black_box

Okay. So it really is black and white. What a shame!