Income verification for Self Employed

Gettingthere987

Hi there, I’m trying to rent a house and am self employed. My last years company accounts (directors salary and divs) are about 26 x rent, and I know I need 30 x rent, to prove income.
Do you think they’ll accept an accountants reference instead? I also haven’t put in my Self Assessment tax return yet as it’s not due until Jan, but presume my accountant will need to match that to what’s shown on the company accounts?. I’m really worried I won’t be able to get the house as it’s not quite 30 x multiple needed. Any advice? Thank you very much 

theartfullodger

Do tax return asap (what's the delay??).  Kinda obvious I myself would guess that anything reported to HMrC should match other records (fines can be painful).  Simple, just provide copies of your (completed) tax return, job done.

Funnily enough (been a landlord 24 years) when the wife was renting out deceased parent's old home what prospective tenant claimed their income was did not match their eventually provided tax return. 

Good luck. Best wishes to all.

anselld

Gettingthere987 said:

Hi there, I’m trying to rent a house and am self employed. My last years company accounts (directors salary and divs) are about 26 x rent, and I know I need 30 x rent, to prove income.
Do you think they’ll accept an accountants reference instead? I also haven’t put in my Self Assessment tax return yet as it’s not due until Jan, but presume my accountant will need to match that to what’s shown on the company accounts?. I’m really worried I won’t be able to get the house as it’s not quite 30 x multiple needed. Any advice? Thank you very much 

You are not technically self employed (who would normally evidence income by submitting tax return and then getting sa302 certificates from HMRC) you are Employed by your own Company.  The problem with Ltd Co is that you presumably do your own PAYE so you could pay yourself whatever you like at least for a period of time.  Even Company accounts do not prove that any income is sustainable.  In the case of the 30x rent requirement dividends will not necessarily count either.  So the bottom line is that only the Landlord can really tell you what they are willing to accept; an accountants reference might help but it is impossible to say for sure.  Almost certainly any "box ticking" affordability check is not going to pass so you would need to enter discussion with the Landlord.