Paying tax on studentship
kelsbutt
Posts: 1 Newbie
in Cutting tax
Hi there,
I am in my 2nd year of self employment and PhD study. We want to apply for a mortgage this year but my 2nd year self employment returns will be slightly lower than my first year and a mortgage broker has suggested that this will put off potential mortgage lenders. My PhD studentship is not an income that the banks will take into account and was excluded from my first year self assessment returns because it is tax free. However the mortgage broker has suggested that I add this year's income (20,000, or at least part of it) to my self assessment return and pay tax on it in order to boost my net profit.
Is this actually legal ?
Many thanks for your help
I am in my 2nd year of self employment and PhD study. We want to apply for a mortgage this year but my 2nd year self employment returns will be slightly lower than my first year and a mortgage broker has suggested that this will put off potential mortgage lenders. My PhD studentship is not an income that the banks will take into account and was excluded from my first year self assessment returns because it is tax free. However the mortgage broker has suggested that I add this year's income (20,000, or at least part of it) to my self assessment return and pay tax on it in order to boost my net profit.
Is this actually legal ?
Many thanks for your help
0
Comments
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I doubt it, if it's paid to you non-taxable then there's nowhere on the tax return that you could put it without lying.
Edit: It might be worth asking on the Student board whether any other PhD student know of lenders who will take the stipend into account - in some respects it's a more reliable source of income than salary.0 -
do you propose to claim business expenses on your SA return? If so, don't, theres nothing illegal in not claiming expenses. That will up your taxable income.0
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It's a ridiculous suggestion, IMO.
You only need your mortgage lender to request payslips or a P60, then they will see you are receiving a studentship, rather than employment income.0 -
glider3560 wrote: »It's a ridiculous suggestion, IMO.
You only need your mortgage lender to request payslips or a P60, then they will see you are receiving a studentship, rather than employment income.
The OP is self employed so no payslips or P60. Income taken form self assessment return hence wanting to include it in the income figure to increase profit figure on return.0 -
The OP is self employed so no payslips or P60. Income taken form self assessment return hence wanting to include it in the income figure to increase profit figure on return.
It's a ridiculous suggestion because it's mortgage fraud and if the lender ask for the business "books", it'll be obvious that the broker/borrower have been complicit in a fraud.0
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