Self employed mortgage

mcplumb

I'm self employed, my wife employed.

If we were to apply for a mortgage would the lender require 2023/24 tax return to be filed?  Is is it usual for a lender to run to HMRC deadlines for earnings info?

I have nothing to hide and have consistent earnings year on year. Although in 2023/4 I purchased a replacement vehicle that has skewed last years earnings sub 17k.

Hoenir

mcplumb said:

Although in 2023/4 I purchased a replacement vehicle that has skewed last years earnings sub 17k.

Your declared earnings should be unaffected by the vehicle purchase. 

mcplumb

It was a van purchase, so will reduce my taxable income in 2023/24 return 

amnblog

You should be able to work on 2021/2022 and 2023/2023 figures if your application is in before the end of September

Jemma01

When is your company due to have their year end filing ready? Mine is 31st Jan 2025 (I think this is the default for many companies, but I'm not sure about old companies)
You can find out when yours is on companieshouse, under "overview", something like "due filing date is 31st Jan 2025"

If you're doing your filing now because you can (my account year end is 30th April, I've asked my accountant to file for 2023/24), but that's because I'd want to know how much I owe HMRC, before I can accidentally spend it on the mortgage. So I will share my full account details with HSBC for 2023/24, but that's because I chose to file early. I highly doubt they'll ask you to file sooner than due (guess it might depend how fussy they are, how consistent your earnings have been, and how long your company has been up for).

This experience taught me that lenders have different requirements for self-employed.

mcplumb

amnblog said:

You should be able to work on 2021/2022 and 2023/2023 figures if your application is in before the end of September

Ok, thanks.

This will be my first application since being a sole trader and not sure how different it is to an employed application. My last application was over 20 years ago and finished paying the mortgage off years ago.

Rather frustratingly it looks like taxable income is the key and my new van purchase reduces 2023/24 by £17k, the purchase came from savings (not that it makes any difference ?)

 

   

ACG

You will still be ok using 2022/23 self assessments as amn says, you are find up until around September time. 
However, if it goes beyond that I would not worry too much. Many lenders will add back in that figure with an explanation, its obviously not an ongoing expense and the fact you could buy it for cash seems to suggest the business is doing well. Probably better to use a broker if it gets to that point, but I dont think you need to worry too much.