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    • JSCB
    • By JSCB 4th Mar 18, 5:09 PM
    • 44Posts
    • 12Thanks
    Self-Employed First Time Buyer - Self Assessment??
    • #1
    • 4th Mar 18, 5:09 PM
    Self-Employed First Time Buyer - Self Assessment?? 4th Mar 18 at 5:09 PM
    Hi there!

    I'm not "planning" on buying for at least another year, giving me time to grow my deposit further, gain two years financial accounts and by which time my partner should be in a full-time stable job, however, with this financial year soon coming to a close and it being my first, I figured I should seek some advice now on how best to do my self-assessments to ensure we can get a mortgage when we're ready.

    I'm a self-employed sub-contractor and primarily work for just a single contractor, I have a few expenses, tools, work miles etc, but nothing to complicated so I figured I'd be able to do my self-assessment myself.

    I'm good with paperwork and numbers, and assumed it would be as simple as adding up all my monthly statements from the contractors I've worked for and putting that in income box X, and then adding up my expenses (for which I have all the receipts, around just 30 of them!), which I put into expenses box Y, to equal my gross profit, Z upon which HMRC calculates my tax etc.

    However, firstly, is it this simple?

    And secondly, should I consider using an accountant to do my self-assessments instead? Will not doing so make it hard for me to get a mortgage when I'm ready?

    I've read mixed opinions but no solid advice. I would of thought if HMRC accepts you doing your own self-assessment (hence the name), then surely the banks should too? But do they no trust they're right, as I've heard people say they need to be done by a chartered accountant for the banks to use them, unless this is for those who own Ltd companies with complicated accounts etc?

    Not sure whether it makes any difference, but the contractors I work for do also deduct CIS to be passed onto the government, so proof of these should back up my earnings too?

    If we have a decent deposit and my partner in a solid job by then too, will it really matter that much anyway?

    Any advice on how to move forward the next few years would be really great! I'm getting a lot of mixed messages, but no straight forward advice. I've even been told not to bother speaking to a mortgage advisor at the bank as they won't know much about mortgages for the self-employed!

    Thanks in advance,
Page 1
    • Pingwhite
    • By Pingwhite 4th Mar 18, 5:35 PM
    • 5 Posts
    • 0 Thanks
    • #2
    • 4th Mar 18, 5:35 PM
    • #2
    • 4th Mar 18, 5:35 PM
    The lenders will ask for SA302 and tax year overview.

    If you register an online account at HMRC these can be downloaded once the returns are submitted.
    • amnblog
    • By amnblog 4th Mar 18, 6:59 PM
    • 10,469 Posts
    • 4,136 Thanks
    • #3
    • 4th Mar 18, 6:59 PM
    • #3
    • 4th Mar 18, 6:59 PM
    You are over thinking this. As a CIS Contractor with a two year track record you can supply 3 months payslips and three months bank statements showing the income coming in.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • JSCB
    • By JSCB 4th Mar 18, 7:18 PM
    • 44 Posts
    • 12 Thanks
    • #4
    • 4th Mar 18, 7:18 PM
    • #4
    • 4th Mar 18, 7:18 PM
    So the bank might treat me as an employee anyway, just asking for some of my monthly statements and bank statements, or if not I can just print off some official documents from the HMRC online portal which show what I've submitted to them for the year anyway?

    I'm not really any different to an employee on a zero hours contract, but wasn't sure how the banks would see it or what they'd want from me!

    Thanks guys
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