Pay Pension as Employee Contribution or Company Contribution To "Increase" wage to get mortgage.

CLEARANCE_FEE

I'm the director and sole employee of my LTD company and I'm sorting out the pension just now and I'm thinking long term about a mortgage. If I pay myself the money, then put it in the pension fund (employee contribution) it will inflate my income helping to get a mortgage but the company will pay more tax on its side. If I pay it all from the company side it will decrease my wage but it will not be taxed first. What would be the best to do?

Savvy_Sue

Ask your accountant. 

Annisele

I'm not sure you're correct in your assumption that "inflated" income will help you get a mortgage. I appreciate you're looking at a long term plan - and current lending criteria are likely to change - but most lenders now will treat you as self employed if you have more than a 25% or so shareholding in the company you work for. You might technically be an employee, but lenders are wise to your ability to choose how to take money out of your company so they will usually consider the company's profitability rather than just your income.

But as Sue says - any questions about how to take money out of a business ought to go to your accountant.

bris

Banks want to see 3 or 4 years filed accounts, dress up your income all you want but your accounts filed at companies house is what they will go on.