Renting more difficult than buying!

dont_use_vistaprint

Its very normal for agencies to avoid self employed and directors on low salaries, they are high risk and there's plenty enough demand from high paid workers.

With 'some' mortgages you can self-certify easily, rental market is very different.

Not sure how to get around it, other than trying different agencies but when I rented out properties, I also chose to avoid self-employed

theartfullodger wrote: »

Simple solution: Just go in with last three years tax-returns with declared profits. Those can then be used as basis of income for rent paying ability....
Wrong of course.

Not sure how this would help, as most small business advised to declare losses to avoid tax and if its a policy decision of the agent or owner then it wont make the slightest difference how high profits are

theartfullodger

dont_use_vistaprint wrote: »

......
Not sure how this would help, as most small business advised to declare losses to avoid tax and if its a policy decision of the agent or owner then it wont make the slightest difference how high profits are

"Declare losses to avoid tax" yet "high profits"?? Sounds like possible tax fraud, or have I missed the point, please?

lisyloo

theartfullodger wrote: »

"Declare losses to avoid tax" yet "high profits"?? Sounds like possible tax fraud, or have I missed the point, please?

There are many tax avoidance strategies used by limited companies which are perfectly legal.
This may make it look like the person is poor when in fact they are not.
Let me give you an example.


Let's suppose someone getg £110K into their Ltd company.
The first thing they should do is put £40K into their pension and pay no income tax and NI.
They should then pay themselves enough income to get full NI benefits but not pay income tax. Can't quote exact figure but means about £10K income.
They should pay themselves about £30K in dividends of which £2K is tax free and the rest is 7.5% income (not 20%).
If they have a non-working wife (or husband) or one who can salary sacrifice then they should pay their spouse £30K in dividends as spouse pays 7.5% income tax and not 20%.


No, it is not illegal to make your profits and income appear low.
Putting money into a pension and paying dividends are perfectly legal ways of avoiding tax.


We had no issue.
Maybe our landlord (or his accoutant) knew how to interpret books.
I can see it might be an issue with an amateur landlord who sees someone with £10K "income" and doesn't understand concepts such as dividend income.