Mortgage with new job and paid gross

rich20

Will I be able to get a mortgage being paid gross from a foreign company? Keep being told I'll need to prove I'll pay my tax and will therefore have to wait 1 year, until I submit a self assessment as just started job. 

Thanks.

MalMonroe

You don't say who keeps telling you that you need to prove your tax payments but there is some very helpful info from the UK government in the following link - https://www.gov.uk/tax-foreign-income/paying-tax

You also might be able to get more advice from a mortgage broker.

rich20

Thanks for the comment. The mortgage broker I've approached is who has advised I'll need to show proof of paying tax on Foreign income. 

Grumpy_chap

rich20 said:

Will I be able to get a mortgage being paid gross from a foreign company? Keep being told I'll need to prove I'll pay my tax and will therefore have to wait 1 year, until I submit a self assessment as just started job. 

Thanks.

It sounds like you have recently commenced work in a self-employed capacity. 

Have you taken professional advice on whether sole-trader or Ltd Co. is the most appropriate structure for your circumstances? 
It is also worth keeping your business accounts through separate accounts from personal.
From what you have said, I'll assume you are operating as sole-trader and also that you notified start if self-employment to HMRC (or will do so within the required timescales).

As a sole trader, lenders will usually be looking to see that you have an established level of income that they can reliably expect to be ongoing and provide lending against.  Typically, that is evidenced through your SA103 return, often for two or three years.

The fact your business (whether sole-trader or Ltd Co) receives income from an overseas customer is probably less significant, though banks may see a variation in risk between where the customer is based.  All overseas income may also be assessed as more of a risk than UK-based customers.

It sounds as though the Mortgage Broker you are dealing with is essentially correct - maybe you need to just follow their advice.  Trying to take a mortgage shortly following starting a new business is difficult.  Is this mortgage to allow you to buy a property (in which case it is an important life step) or simply to obtain a more favourable interest rate (in which case you could delay without as much impact on life).

MWT

Grumpy_chap said:

rich20 said:

Will I be able to get a mortgage being paid gross from a foreign company? Keep being told I'll need to prove I'll pay my tax and will therefore have to wait 1 year, until I submit a self assessment as just started job. 

Thanks.

It sounds like you have recently commenced work in a self-employed capacity. 

Have you taken professional advice on whether sole-trader or Ltd Co. is the most appropriate structure for your circumstances? 
It is also worth keeping your business accounts through separate accounts from personal.
From what you have said, I'll assume you are operating as sole-trader and also that you notified start if self-employment to HMRC (or will do so within the required timescales).

Not necessarily, you can be employed by a foreign employer with no UK/EU presence and still be considered an employee, not 'self-employed'.

However it is necessary to properly pay tax and NI each month and this is often best done through an accountant, but for the details, take a look at 'PAYE Direct Payments procedures'.

Grumpy_chap

MWT said:

Not necessarily, you can be employed by a foreign employer with no UK/EU presence and still be considered an employee, not 'self-employed'.

However it is necessary to properly pay tax and NI each month and this is often best done through an accountant, but for the details, take a look at 'PAYE Direct Payments procedures'.

Thank you - I was not aware that type of arrangement was possible.  It may invalidate my comments, except we were both suggesting the OP takes professional advice to ensure everything is processed correctly.

rich20

Thanks for the replies. Some interesting comments. I'm employed full time by a company outside of the EU. The DPNI scheme is an interesting option I'd not heard about, but presumably the accounting fees will be much more than that for a self assessment per year.  

MWT

Running a one person payroll should not be expensive, but the distinction is you get to avoid being 'self-employed' with all that entails when going for a mortgage...

You'll still need a good broker who understands the overseas employer angle though.

... and just in case it wasn't clear, you can't just consider yourself employed and submit your normal self-assessment once a year, you'll need to be in the scheme or self-employed, or employed through your own company etc.