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Declaration of Self-Employed (Fluctuating) Income for Loan/ Mortgage Applications

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Tom39Tom39 Forumite
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Dear Sirs,
I am self employed and my income has fluctuated substantially over the last three years - and in particular will be substantially LOWER for the current tax year (2019/20) when I file this coming April.
What income should I honestly declare for planned upcoming loan/ mortgage applications? Eg should I file an average of say the last 2 - 3 years HMRC declarations or file (what will be next month) my latest (and substantially lower) HMRC declaration?
Obviously I would wish to apply for as big a loan/ mortgage as I legitimately can (say based upon my 2-3 year average income), but - given that loan/ mortgage applications are rightly forwarded to HMRC for scrutiny of the income declarations - I wouldn't wish to risk an HMRC investigation because my loan/mortgage declaration and latest HMRC declaration don't match.
Please advise!


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  • zx81zx81 Forumite
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    It will vary by lender, so make sure you check with them directly.
  • edited 24 March at 4:13PM
    ThrugelmirThrugelmir Forumite
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    edited 24 March at 4:13PM
    Speak to a mortgage broker. Lenders differ in their approaches. A decline in the last trading year will obviously influence any decision. 
    Lenders are able to ask HMRC for confirmation of declared earnings. 
    I would suggest that submission of differing figures should be avoided. 
    “An investor who has all the answers doesn’t even understand all the questions.” - John Templeton
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