SA302 - declaring self-employed earnings to mortgage lender

Thrugelmir

Typhoon2000 wrote: »

I guess he means if he puts down the 20k expense he incurred for buying new machinery for his business on his tax return, his profit will be right down and he will pay less tax.

Purchase of a capital item is not an expense. Depreciation is. Depreciation isn't tax deductible when it comes to ascertaining taxable profit. Whereas depending on the nature of the capital there will be a deduction from taxable profit. Hence why I asked the question originally.

anselld

First_time_buyer_lauren wrote: »

We have literally just today been accepted for our first mortgage (subject to valuation) we went with Santander through a MA because they only went off the past years earnings, my partner is self employed and I have been keeping his books. I completely disagree with the "dishonest" comment, we maximised ours by not claiming for everything that we could have claimed for when doing the tax return, the only people that have been done out of money is ourselves as we now have a rather huge tax bill to pay by january (not unaffordable by any means though which is something you need to keep in mind).

Artificially inflating your income with a view to obtaining a higher mortgage is still dishonest in my view. The mortgage advisers may disagree in private when the regulators are not listening.