Getting a mortgage whilst being paid by an overseas employer.

robinski1

I have just been employed by an overseas company. I am based in the UK and will be paying UK taxes etc. My employer doesn't want the hassle of registering for PAYE as I am their only UK employee and has suggested that i am paid via an Umbrella company so that all tax and NI is paid correctly. However my mortgage broker has told me that using an umbrella company would mean I am classed as a contractor (even though I am full time permanent employee), hence i would need a 2 year track record rather than the normal 3 months. Does anyone have any ideas about being paid in a different manner or a way of securing a mortgage without waiting so long ? Thanks

K_S

@robinski1 Have you been continuously employed in the same line of work until now?

robinski1

No, although i have done this work all my working life, there is a few years gap since my last self assessment.

K_S

@robinski1 Sorry I should have been clearer, have you been continuously employed (in any form, PAYE or otherwise) in the same line of work until now?

robinski1

i have been employed and SA for 20 years in the same line of work but not for the last 7

K_S

With a 7 year break, you will need to build a track record unfortunately for the purpose of a mortgage.

MWT

robinski1 said:

My employer doesn't want the hassle of registering for PAYE as I am their only UK employee and has suggested that i am paid via an Umbrella company so that all tax and NI is paid correctly. However my mortgage broker has told me that using an umbrella company would mean I am classed as a contractor (even though I am full time permanent employee)...

I've been in a similar situation for a few years now, but I went down the Limited Company route instead.

It doesn't help you with regards to mortgages in the short term though.

Take care with the 'Umbrella Company' path though as you may find that in reality you really are on a contractor contract with the Umbrella Company and not a full-time permanent employee of the 'overseas company' at all...

If the salary payments are coming from the Umbrella Company and they are not just mananging the PAYE/NI payments then take care to ensure that any employment security you may think you have is fully documented in a side agreement with the overseas entity.