Buying an existing / trading Ltd company for the accounts

[pr1]

What absolute nonsense. Depends entirely what company he buys.

Absolute drivel

Please hush up, the adults are talking, there's a good boy

so I'm a 20k/year permie but my friend has recently stopped contracting after being on £800/day for 5 years, he's given me a really good deal to buy his company off him so it means I can secure myself a 700k mortgage because his accounts were spotless

right

[SueEllen]

When I went for a remortgage they want to see that I had been a director for the years stated plus the sum in the Company Bank account. They were doing it under their self-employed criteria as the only people I had employed had been family members.

So you may as well start up your own company and do it on contract value.

If however your company employees are non-family members the lending criteria is as if you are an employee.

[MrMarkyMark]

so I'm a 20k/year permie but my friend has recently stopped contracting after being on £800/day for 5 years, he's given me a really good deal to buy his company off him so it means I can secure myself a 700k mortgage because his accounts were spotless

right

You have outlined both a completely different and irrelevant situation than anyone, here, was talking about.

Get back to your school work.

[MarillionFan]

so I'm a 20k/year permie but my friend has recently stopped contracting after being on £800/day for 5 years, he's given me a really good deal to buy his company off him so it means I can secure myself a 700k mortgage because his accounts were spotless

right

Actually it's a combination. Your self assessment is the main driver. It used to be on the basis of accounts to show that the Ltd company you worked through was solvent and paid sufficient dividends/profit etc

There are benefits to having a set of accounts albeit you may have not been the director, and they would use my last 3 years SA. As I would move from permie to contract, most likely proof of a contract would be required, but the basis of the accounts would also be taken into account. It's better to have something than nothing.

[WordIsBond]

Had a quick search and couldn't find this.

So another contractor friend of mine who has gone permie, is going to close his company down at the end of March. This would be his fourth year trading.

I on the other hand wrapped mine up a few years ago. On the original basis that I was hanging on in permie employment so I could move (ie. port my mortgage) because if I was to go back contracting I wouldn't have 3 years worth of accounts, I thought on the idea of taking over his company & then trading from that.

So it should be easy to swap directors and I could pay a nominal fee for that. Would the trading accounts be beneficial for me if I needed a mortgage if I was to go contracting?

Anyone know?

What's your plan for when HMRC shows up two years from now and says he should have been IR35 caught for the last three years?