£200k a year income; PCP declined for £650 pm

CrowCrow

fabiantony wrote: »

@jamesd

Good question; Yes I am self-employed (1.7 years now) through my own company where I am sole director and with direct client contracts.

Sigh.

No you are not self employed. You're an employee of Fabiantony Limited. You just happen to also be the Director and sole shareholder of Fabiantony Limited.

Tax man wants a word, by which I mean acronym. IR35...

fabiantony

CrowCrow wrote: »

Sigh
....
Tax man wants a word, by which I mean acronym. IR35...

What makes you think that I am not already inside IR35?

And while I can see where you are coming from - in/out IR35 determination is something that even when knowing every detail about the company, clients, contract types, etc, etc, etc all accountants/tax-attorneys struggle with.

So... kind of a far reaching comment there.

pelirocco

fabiantony wrote: »

Yes, capital gains. And yes, I am the director at my LTD.

There are several ways of doing things as a contractor, and you might be thinking of other ways.

Long story short, "I" pay tax twice. When my company bills an invoice for say £1,000 then the company pays between other things corporation tax. That leaves net profit aprox at say £850. Assume no expenses, etc, I withdraw the profits of £850. Now, once those personal dividend withdraws reach the HMRC threshold (if i remember correctly 36k for the first band), I, as an individual, I'm responsible for declaring and paying my taxes on that according to the tax bands etc.

Based on yearly projections I (even if not at the threshold yet) start setting aside the tax money which i will incur for the financial year.

Hope that explains it.



Oh, and regarding that. Take home pay is not 'Salary/12' (ie. £200k/12) - Not in contract, not in any job.

I am also a director of a ltd company , and have been for many years.
You aren't paying tax twice , your company pays corporation tax on profits, depending on the amount you put through as salary, there maybe employers n.I, and employers pension unless you have opted out.
You will , depending on the amount you are paid through salary , pay paye, ni, and again pension if applicable
You will then be taxed on dividends

Capital gains? Nope

fabiantony

pelirocco wrote: »

I am also a director of a ltd company , and have been for many years.
You aren't paying tax twice , your company pays corporation tax on profits, depending on the amount you put through as salary, there maybe employers n.I, and employers pension unless you have opted out.
You will , depending on the amount you are paid through salary , pay paye, ni, and again pension if applicable
You will then be taxed on dividends

Capital gains? Nope

Hey just having checked my returns files, you are completely right - we are talking about the same thing but I was misnaming it by calling the self-assement action of paying taxes on dividends "capital gains tax" which is incorrect as you rightly pointed out.

Candyapple

Going back to your original thread……..

You shouldn’t be adding notices of corrections on your credit file, this will only lead to auto-declines or referred decisions for anything you apply for as lenders will have to manually check your file;
http://www.callcredit.co.uk/consumer-solutions/frequently-asked-questions/notice-of-correction

If you need Noddle to update your electoral roll info, write to your local council’s electoral roll department and ask for a letter of confirmation that you are indeed registered. Once you have this letter (mine took about a week to arrive) just scan/upload/email attach a copy of it to Noddle using their ‘contact us’ and they should update your info.

Are you showing as being on the electoral roll on Experian and Equifax? If not, repeat same steps as above.


I know you said you’ve held your Cap One card for 2 years, has there been any mismanagement of the account, late payments, over limit etc.? I ask because Cap One usually increase limits 3-6 months, at minimum annually so was £800 your starting limit and it hasn’t moved or has it only just been increased to £800? If you haven’t had a credit limit increase, call them up and ask for one.

Whoever you bank with, have you tried applying for a credit card with them? They will have a history of your financial situation, plus it would be a mainstream card and you will most likely get a decent credit limit.

Also, not sure if you already know, but ClearScore is Equifax’s free version of your credit report, just as Noddle is for CallCredit. If you need your Experian report in future, only pay £2 for your statutory copy: http://www.experian.co.uk/consumer/statutory-report.html

I know you mentioned your partner did have £12k debt which you cleared for her. Are these debts/cards/loans etc. now closed? Or are they still active accounts? I ask because again, this will impact credit limits etc. for anything you apply for (given that you are both financially linked). You should also get your partner to sign up to Noddle, ClearScore and pay £2 to Experian to get copies of her credit reports to check that everything is correct across all 3 agencies. Better to get this sorted now than in 2 years’ time when you may be looking to get a mortgage and are faced with discrepancies in your files.

Finally, you may want to send a subject access request to both CIFAS and National Hunter. I know it may seem scary, however given that you are such a high earner now and you mentioned about being on £30k before, some lenders whom you have applied for credit may be suspicious about this even though entirely innocent and you may be on their system or the National Hunter database for discrepancies in salary/something else, in which case this would need sorting out ASAP as it’s very serious.

https://www.cifas.org.uk/sf_sars
http://www.nhunter.co.uk/SAR.pdf

fabiantony

Candyapple wrote: »

You shouldn’t be adding notices of corrections on your credit file, this will only lead to auto-declines or referred decisions for anything you apply for as lenders will have to manually check your file

Oh dear.. Ok well its done now, i will avoid it like the plague in the future.

Candyapple wrote: »

If you need Noddle to update your electoral roll info, write to your local council’s electoral roll department and ask for a letter of confirmation that you are indeed registered. Once you have this letter (mine took about a week to arrive) just scan/upload/email attach a copy of it to Noddle using their ‘contact us’ and they should update your info.

Amazing! Will do. Much appreciated.

Candyapple wrote: »

Are you showing as being on the electoral roll on Experian and Equifax? If not, repeat same steps as above.

Yes, on both, for the past 1.5 years. Neither me or my partner are showing on CallCredit

Candyapple wrote: »

I know you said you’ve held your Cap One card for 2 years, has there been any mismanagement of the account, late payments, over limit etc.? I ask because Cap One usually increase limits 3-6 months, at minimum annually so was £800 your starting limit and it hasn’t moved or has it only just been increased to £800?

Has never been mismanaged. Always paid in full. Max utilisation has been around %90 only once, other months below %50.

The original limit was £200. Was increased to £800 7 months ago. I believe i might be due another increase next month.

Candyapple wrote: »

Whoever you bank with, have you tried applying for a credit card with them? They will have a history of your financial situation, plus it would be a mainstream card and you will most likely get a decent credit limit.

When I applied for the first time to a credit card 2 years ago it was directly (online application) with my bank (Lloyds) which got immediately declined.

Is at that point when I became very surprised of being declined (had a personal loan from them for £10k which I had already paid off, always on time, and even 2 years early) that I started looking into my credit score.

Around that time was when I got my CapOne card.

Candyapple wrote: »

I know you mentioned your partner did have £12k debt which you cleared for her. Are these debts/cards/loans etc. now closed? Or are they still active accounts? I ask because again, this will impact credit limits etc. for anything you apply for (given that you are both financially linked).

Good question.

Some of them have been closed as they were personal loans. Others were CC, Store Cards and planned OD.

If I remember correctly, as it stands, her total open credit lines are around 6k I believe. Is that too much? We actually thought of keeping them open as we thought having it available (in moderation) and not using it was a good sign?

We check her scores as much as mine and they are both around the same. Main difference is her default and lower income.

Candyapple wrote: »

Finally, you may want to send a subject access request to both CIFAS and National Hunter. I know it may seem scary, however given that you are such a high earner now and you mentioned about being on £30k before, some lenders whom you have applied for credit may be suspicious about this even though entirely innocent and you may be on their system or the National Hunter database for discrepancies in salary/something else, in which case this would need sorting out ASAP as it’s very serious.

I was not even aware that was even a thing. I will read more into it and will definitely consider on following up with your advice.

A massive thanks!

Candyapple

fabiantony wrote: »

When I applied for the first time to a credit card 2 years ago it was directly (online application) with my bank (Lloyds) which got immediately declined.

Is at that point when I became very surprised of being declined (had a personal loan from them for £10k which I had already paid off, always on time, and even 2 years early) that I started looking into my credit score.

With Lloyds, they have an internal score policy. If you want to find yours out, next time you go into a branch, ask one of the cashiers. Band A is the highest and then you’ll have a number rating next to it. Such as A1, A2, A3, A4 ranging through to like F (don’t quote me on it ending at F). It’s based on things like how you run your account, cash flow, how much you spend etc. The numbers represent the APR risk, so a ‘1’ rating would mean you would likely receive the lowest APR for whatever products you apply for.

It will also show on their screens what is available to you, which is handy if you don’t want to make applications for credit unnecessarily. So if you wanted to apply for a credit card, they would be able to tell you what your credit limit would be if you applied and what cards you are eligible for. If you were eligible for a loan, they would be able to tell you for how much and what the APR rate would be.

Lloyds receive monthly updates from the credit reference agencies and your internal score gets updated at the start of every month. It works because I remember I went in with my partner and he was rated as A1 and was showing as eligible for a loan of x-amount and credit card for x-amount. I checked mine and was rated as B2 and wasn’t eligible for anything (I was only using the account as a mule account to get the 4% interest Club Lloyds). So for 2 months I started using it as if it was my everyday account. I went back to the branch 2 months later and checked my rating and it had risen by a band and I was now eligible for a credit card with x-amount of limit. I applied online and sure as anything, received the exact limit that was identified in branch.

Sometimes they don’t want you to have too many products with them to limit their risk liability, at other times they will throw offers at you. It might even have been that because you paid your loan early that this went against you internal score wise (silly, I know) as they didn’t make as much money out of you. Hope that helps.

Gunther_Golf

OP

You have clearly worked very hard in your career to get to the point where you have such an enviable monthly income - Don't justify yourself to users on an internet forum - A place packed full of liars and Walter Mitty's.

My gross is £26k a year and my partner is around £32k - Given how stupid i was with money as a pup and the state i was at one point in i now feel like a millionaire thanks to the efforts of my missus who sat me down and gave me a shake.

Everything in life is relative - Your rent of £1100 a month horrifies me - It's around 70% of my take home pay - However i live in a part of the country where a 3-bed semi mortgages at around £550 a month. As i said it's all relative.

I wish you well regards your plans - The "good" advice on here is generally worth taking on board - Just keep an eye open for the know it all's and keyboard warriors

Out of total self-indulgence and as an avid car fan what were the wheels you were considering?

pelirocco

If you are that set on getting the car , you could lease it through the business and put the payments through as drawings

Ben8282

Your problem is very simple. Your credit history is inappropriate for somebody with your claimed level of income. If you really do have a personal income of £200,000pa being paid into your current account and are transferring a substantial amount of this to savings which are presumably in an account or accounts somewhere, it almost defies belief that your bank (or banks) have not have offered you even a minimal overdraft facility and have not been prepared to increase your credit card credit limit beyond £800.You appear to easily meet the criteria for Lloyds Private Banking accounts.