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self employed income question ref net profit
henry123_2
Posts: 10 Forumite
Wife and I moving house and applying for a 60% LTV mortgage.
She has the main income, professional, part-time but permanent.
I have a small income from a part-time self employed business.
We need to add our incomes.
I list everything and my accountant does my returns. I have dug up my last Profit & Loss account. I don't understand it and may have it wrong but...
My Net Profit figure on my Profit & Loss account is diiferent (lower) than the taxable income figure which is submitted to Inland Revenue. My balance sheet and P&L accounts don't seem to look great.
Which figure do mortgage lenders use as to calculate lending?
The last 3 years of submitted taxable income or will they want my full accounts and balance sheets?
She has the main income, professional, part-time but permanent.
I have a small income from a part-time self employed business.
We need to add our incomes.
I list everything and my accountant does my returns. I have dug up my last Profit & Loss account. I don't understand it and may have it wrong but...
My Net Profit figure on my Profit & Loss account is diiferent (lower) than the taxable income figure which is submitted to Inland Revenue. My balance sheet and P&L accounts don't seem to look great.
Which figure do mortgage lenders use as to calculate lending?
The last 3 years of submitted taxable income or will they want my full accounts and balance sheets?
0
Comments
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Net profit is rough equivilant to gross income.
Lenders will vary a little but this is the figure most widely used.
3 years accounts audit showing net profit in my experience.0
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