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Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Self employed can't prove (good) income, BTL mortgage a solution?
Comments
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OP I know you feel entitled and that anyone that owns a house or has more money than you were born with a silver spoon in their mouth.
Clearly not everyone is like this, tell me how much it costs to go to University, building up your career, how many non monetary sacrifices one does for their career e.t.c?
Have you considered why you have bad jobs, no job e.t.c? What did you do at school? Did you &*$$ it away fooling around at school? not realising education or a good job and hard graft gets you somewhere in life.
Have you actually looked at how LL are being penalised with the new tax laws and how little they get in return if you need a mortgage.
Instead of complaining about other's people's lives, sort your own house/life out"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Capital costs do not affect income, nor do they affect gross profit and it's their depreciation that affects net profit. If you have put the capital costs against your income you need an accountant to help you write to HMRC and explain.0
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very well said,OP I know you feel entitled and that anyone that owns a house or has more money than you were born with a silver spoon in their mouth.
Clearly not everyone is like this, tell me how much it costs to go to University, building up your career, how many non monetary sacrifices one does for their career e.t.c?
Have you considered why you have bad jobs, no job e.t.c? What did you do at school? Did you &*$$ it away fooling around at school? not realising education or a good job and hard graft gets you somewhere in life.
Have you actually looked at how LL are being penalised with the new tax laws and how little they get in return if you need a mortgage.
Instead of complaining about other's people's lives, sort your own house/life out
contains all the info the OP needs to know instead of the flight of fancy their feeling of entitlement seems to have engendered in them0 -
My experience of the self employed who take cash jobs and avoid tax is that it's a sure fire way to hold yourself back financially.
The guys that I subcontract all make more and have longer term, regular jobs with people like me. The ones who faff around trying to hide a few bob here and there are constantly flitting from one job to another and also end up finding the bad customers who don't value them and don't pay as much in the first place, or maybe don't even pay what was agreed. With no paperwork, there's no proof either to get what's due.
The ones who are scared of HMRC live in the worst houses in the worst areas and produce the worst work. There's no one decent to learn from when you have to avoid everyone who does it all properly. So you have to undercut them because you're not as good - which is at least the value of the tax paid anyway. And the tax is still due on what you do earn if HMRC do come down hard.
The only person that ever wins is the dodgy customer who wants to keep their cash.Everything that is supposed to be in heaven is already here on earth.
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Doozergirl wrote: »My experience of the self employed who take cash jobs and avoid tax is that it's a sure fire way to hold yourself back financially.
The guys that I subcontract all make more and have longer term, regular jobs with people like me. The ones who faff around trying to hide a few bob here and there are constantly flitting from one job to another and also end up finding the bad customers who don't value them and don't pay as much in the first place, or maybe don't even pay what was agreed. With no paperwork, there's no proof either to get what's due.
The ones who are scared of HMRC live in the worst houses in the worst areas and produce the worst work. There's no one decent to learn from when you have to avoid everyone who does it all properly. So you have to undercut them because you're not as good - which is at least the value of the tax paid anyway. And the tax is still due on what you do earn if HMRC do come down hard.
The only person that ever wins is the dodgy customer who wants to keep their cash.
that's why I get 3 quotes and choose the one in the middle"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Simply stick it out until you've got 3 years of accounts then try again - it's not impossible, but it'll take more time. That's the trade off working for yourself.
If you want to cut that short, work for someone else instead, pass your probation period and the banks should be happy to see you.
So, 6 months or 3 years, but either way, not impossible. Your call0 -
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OP you can't have your cake and eat it, you either declare ALL your income so you can afford a more expensive house and pay more tax,
or have more expenses and therefore save tax which will hit your income/dividends and therefore affordability
or tax evasion which is wrong and you will pay many more times over when your caught"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
And they didn't even need to save for a 10% deposit, with 105%+ mortgages available so they even got cash to decorate and buy furniture...!I read an interesting statistic that in 2007, 40% of mortgages were not income verified. So back then, hundreds of thousands of people had the option to buy a house and not be ripped off by a BTL landlord.
Oh, wait. That all ended swimmingly well, didn't it?
Look, you say a mortgage would be "1/3 to 1/2" of the rent. But I VERY much doubt it's that simple. A typical gross yield on a BtL would be lucky to be much north of 5%. Then there's all the other costs those "parasitic" landlords have to pay - maintenance and repairs, service charges, ground rent, voids - oh, yes - income tax...
Few BtL landlords are making any kind of worthwhile return on it, if they bother to do all the sums, unless they're banking on property price rises. Many are quite probably making an actual loss at the end of it all, by the time mortgage interest is taken into account - and that's before you look at the opportunity cost of not investing that equity elsewhere.
There's usually a very good reason that £40k houses are £40k. If they were worth buying, they'd all be bought in seconds flat by those "parasites", especially at 200% gross yields...0
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