Advice on self-employed mortgage

TwoYearToMove

Dazed_and_confused wrote: »

Tax is a personal expense not a business expense.

Are you really self employed? The regular reference to "salary" suggests you are an employee (of a limited company).

I am really self employed I was mentioning salary just a means to describe what I had earned over a period of time, but you could also say income. I presumed the mortgage would be calculated from my income before tax has come out, but if it's based on what I have earned after tax and expenses have come out that's going to make things tricker because obviously I have to earn more than I originally thought.

Dazed_and_confused

Your profit might be say £30,000 and you then have tax and National Insurance to pay of say £5,000.

You cannot claim that £5,000 as a business expense and reduce your profit to £25,000.

Your profit, which I presume the mortgage company is interested in is £30,000.

BoGoF

I hooe you have an accountant preparing those accounts......to be blunt, it sounds like you don't have a clue what is a legitimate business expense or what taxable profit is.

[Deleted User]

Net profit is your turnover minus any legitimate expenses. If you offset too much against your tax liability it will effect your ability to get a mortgage.

You pay tax on your net profit figure. Mortgage lending is calculated on net profit

TwoYearToMove

BoGoF wrote: »

I hooe you have an accountant preparing those accounts......to be blunt, it sounds like you don't have a clue what is a legitimate business expense or what taxable profit is.

Nothing wrong with being blunt I have an accountant. I'm just trying to understand what a mortgage is calculated on.