Self Employed - Preparing for Mortgage Application - No accountant

EndlessStruggle

Hello all,
I am self employed and plan on beginning the journey to buying a house in May 2021 after next years tax return so my average earnings are higher.
My business is so simple financially that I do my own accounts.
In a given tax year I have 12-20 payments in and 12-20 expenses out.
It is very clear cut so I have never sought to use an accountant for filing.
Seeking opinions as to whether this is going to be an issue?
I became self employed fully in March 2020, so my 18/19 and 19/20 returns have mixed income of employed and self employed and my 20/21 will just have self employed so I'm also guessing they would disregard the employed earnings, is this right?
Thanks in advance

Jamaicanmelaff

EndlessStruggle said:

Hello all,
I am self employed and plan on beginning the journey to buying a house in May 2021 after next years tax return so my average earnings are higher.
My business is so simple financially that I do my own accounts.
In a given tax year I have 12-20 payments in and 12-20 expenses out.
It is very clear cut so I have never sought to use an accountant for filing.
Seeking opinions as to whether this is going to be an issue?
I became self employed fully in March 2020, so my 18/19 and 19/20 returns have mixed income of employed and self employed and my 20/21 will just have self employed so I'm also guessing they would disregard the employed earnings, is this right?
Thanks in advance

If you’re a sole trader doing your accounts isn’t an issue at all. They generally just request the SA302 and tax year overviews for the year/years they want to take into account for your income. I’ve always done mine too. I can’t answer the question about employed income though, I’m sorry, I have no idea on that part. 

Jamaicanmelaff

Sorry, you may need to provide some business bank statements too if you have them. I only use my personal current account so statements for that was fine. 

EndlessStruggle

Oh lovely, I can do the SA302s and tax year overviews easy enough and I usually file early April to get it over with and settle the bill. I have a business bank account as of June 2019 but I used personal before then and can provide from that as necessary. Just want to get myself prepared in advance

Jamaicanmelaff

You'll be absolutely fine. Like I say, I don't have a business bank account so just replied saying I use my current account, but they only asked for 3 months' business bank statements anyway. My broker said it was part of their checks on self-employed income during Covid so they may well not even ask you for those anyway. Good luck with your house hunting and application when you are ready.

izoomzoom

I'm SE and submitted mortgage application on the 9th (with DH, who is an employee) I provided tax year overviews and have SA302s but haven't been asked for anything additional yet.

EndlessStruggle

Thank you all for your input. Mine will likely be with OH, who is employed and I have a reasonable deposit so hopefully there will be some good rates etc by that time