Self employed mortgage question

kates08

Hi all,

Me and my Self-employed husband are moving and are just about to put in our mortgage application, however HSBC have only asked for his SA302 rather then his full tax return.

Last year he bought a new van which he is paying for on finance, and we were advised by HMRC to claim the whole amount for the van in the first year by putting the whole van amount (£11k) in as a Annual Investment Allowance in the first year. He obviously didn't spend this much out in that year, but the SA302 shows his profit minus this figure so it looks like he earned £11k less on his 15/16 tax return.

Has anyone else come across this and if so, how did you overcome it? £11k less earnings will seriously dent thr amount we can borrow!

amnblog

Lenders are rarely interested in the detail of Accountancy practice.

An Accountants job is to get your tax bill down, this often does not suit the needs of a mortgage applicant - AIA is an example.

The SA302 is requested because it quotes the 'profit from self employment' (you will also be asked for the accompanying tax year overviews).

Expect HSBC to work from the 11K figure.

If that is a problem, speak to a Mortgage Broker who may be able to position your lending with a more flexible provider.