Employed director without sa302

dale_hopkinson

After working hard for yours to finally get a mortgage, Halifax has just stopped us in our tracks.

I am both a self employed sole trader.
We are also both 50% owners of a limited company, and pay ourselves a wage through paye.

So my wife is not registered for self assessment (she was about 8 years ago).

My SA302 shows both my income from employment (limited company) and sole trader. Halifax have verified this and we're good to go.

For my wife, their external verification company has refused to verify her income from either her hmrc taxable income statement or p60 / payslip. They insist that as she owns 50% of the company she is self employed and demand an SA302. My accountant and hmrcs website say otherwise.

What are my options here?  Is there something else Halifax should accept?

If I register her as self employed, can I then generate an sa302 showing £0 self employed and £££££ paye?

If they need previous years it looks like a £1300 fine for late registration for 19-20 and £1600 for 18-19.

Many thanks in advance, we are quite stressed as we have come so far. Everything else has passed.

ACG

Your wife will be treated as self employed for mortgage purposes because she owns more than 25% of the business. 
Surely your accountant can file an SA302 and this will show £x as employed income and £0 as dividends. This will satisfy Halifax. 

You may only need 20-21 but you could need 19-20 also. 

dale_hopkinson

She isn't even registered for self assessment so would he be able to do that?

DaMoon

Am I right in assuming that your Ltd company business does not pay dividends at all to you and your wife?

dale_hopkinson

It paid out £1000 each to us 18-19 and nothing last year. Rest is all through paye

DaMoon

But you said your wife was registered for self-assessment 8 years ago??? If she was paid a dividend in 18-19 she should have been registered for self-assessment and declared the dividend. Are you sure she is not registered for self-assessment?

dale_hopkinson

Yes because she used to be self employed, deregsitered after having children and then a few years later we started the limited company together.

A lightbulb has just gone off in my head - she hasn't declared the dividend. We never even thought about it as our accountant does the company books.  Although at only £1000 don't think its a requirement.

[Deleted User]

what external verification company are you referring to?   Halifax would be verifying income themselves.  

They might take 2 years full accounts but they are perfectly in line with most lenders if they insist on sa302.  

A ltd company director who earns more than the tax threshold and doesnt take dividends to reduce the tax liability is out of the norm. Lenders dont like anything out of the norm, its suspicious if you do something when 99% of people do something else.  So they don't usually bend over backwards to help you find a way around policy, its up to you to meet their criteria prior to application, not for them to bend their criteria to meet your circumstances.  

dale_hopkinson

Does anyone know if its possible to retrospectively register for self assessment without paying a hmrc fine when there was no requirement to do so?

We still have her UTR number if that helps.

csgohan4

check if she needs a self assessment:
https://www.gov.uk/check-if-you-need-tax-return

but if she is a director then she will need one since being a director at the very least

MWT

It isn't that simple, just being a director doesn't require it, the link you provide confirms that..