How to report Self-Employed Income?

user123a

Hi all,

I'm self-employed, with an annual profit that can vary from year to year. I want to make sure I fill in all mortgage applications, credit reference agency info etc correctly to make sure I don't shoot myself in the foot.

Should I enter the most recent year's profit when asked for "salary", or maybe an average of the last few years, or what?

Thank you!

kingstreet

Enter only what you are asked for.

Typically this will be latest (2017/18) net profit, or director's remuneration and dividends and previous year's (2016/17) net profit or director's remuneration and dividends.

There's a small handful of lenders which takes latest year alone. Most take an average of the latest two years and only take the latest if it is lower...

user123a

Thanks Kingstreet, that's really helpful. If I might ask you one more...

When signing up for Clearscore and for Experian via MSE Credit Club, I'm asked for my salary (it doesn't know I'm self employed, it just asks for "salary"). To give an accurate representation, should I enter the most recent year's profit? Or average of the last two years perhaps?

Thank you!

kingstreet

No idea.

I'm a mortgage broker. I put stuff in lender sites according to their requirements.

IIRC I put my latest net profit in the income box for ClearScore.

user123a

That's really helpful, thanks again!