Salary question for loan forms....

helloguys

Hi,

I've considering taking out a loan and have done the soft search on the site here however theres one thing I'm not sure on when it comes to inputting salary.

As a Director of my limited company who gets paid in dividends and payroll my take home pay is very similar to my salary as I'm paying Corporation tax too so therefore when I input this at say £40k I would take home £37/8k which is much higher than being employed on £40k. Therefore I'm concerned my chances for a loan maybe reduced, or should I put a higher salary in to compensate for this?

Having joined the credit club on here my credit report is 999 but chances of a loan is fair to weak due to affordability.

Thanks guys

[Deleted User]

You can only put in your actual income.

It's nice to have a 999 score but it's a made up number so not of any use, unfortunately.

helloguys

Thank you, thats good to know.

I'm about £600pm better off than they are allowing for but I guess theres nothing I can do if I get declined. I might call them, was thinking of using sainsburys.

dealer_wins

I know its old fashioned but why not save up, rather than take out a loan!

Nebulous2

Don't mess about with the salary you submit. You could find yourself with a fraud marker, as companies share that information and you need to be consistent.

Is affordability tight?

System

helloguys wrote: »

As a Director of my limited company who gets paid in dividends and payroll my take home pay is very similar to my salary as I'm paying Corporation tax too so therefore when I input this at say £40k I would take home £37/8k which is much higher than being employed on £40k. Therefore I'm concerned my chances for a loan maybe reduced, or should I put a higher salary in to compensate for this?

You can only legally put in what your pre tax pay is, anything else is fraud. Many lenders won't take into account dividends so failing affordability tests is the price you pay for having a lower tax bill.

Also you don't pay corporation tax, the Ltd Company does. You and the Ltd Company are not the same person, the Ltd Company is an individual in its own right in law.