Estate Agents Credit Questions & IR35

[Bovverd]

Hi Can anyone help with this. I have browsed the forums for a similar discussion but didnt spot anything.

I am currently in the process of moving house and have received a credit / employment document from the Estate Agents to complete.

A section of the document is employment status and asks if I am employed or self employed. It also requests an annual gross salary.

Now I am set up using IR35 and do not believe myself to be self employed but the issues I have are:

a) If I mention IR35 to this particular estate agent I do not believe they will understand it enough to NOT class it as self employment where they will then most probably demand two years of accounts which I currently do not have.

b) If I were to calculate my Gross salary using conventional methods the Agents may attempt to calculate my Net by deducting 40% instead of the 20% I pay on IR35. This will then make my take home pay seem considerably lower than it actually is and may result in being rejected on the application.

Is it possible or advisable to calculate a different gross annual projected figure which if the agents then apply a 40% deduction it would then total my accurate take home figure.

Thanks in advance for your time with this.

[malvolio]

Sorry, don't understand.

If you are paying yourself inside IR35, (a) why , (b) you are paying yourself 95% of your gross income or you're in trouble and (c) you have proof of income, either from YourCo's accounts and payslips or your umbrella's payslips. If you haven't got any of them, you have a legal problem rather more pressing than an estate agency.

All they want is an honest answer as to your annual pre-tax income and some proof of it. Inside IR35, payslips will suffice. I have no idea why you think they will knock off arbitrary percentages, nor do I understand the 20% you quote. Unless, of course, you aren't paying the right amount of tax...

[Pondlife]

Are you buying or selling through this agency?

I can't see why your employment status is any of their business to be honest.

In my (cynical) view this is just some info gathering exercise so you can get a call from their inhouse financial adviser.

[Bluebird]

They are going to try and sell you a mortgage through there financial arm.

I hate estate agents that do this - I was once told I couldn't view a property with an EA until I'd spoken with their financial advisor !!

[Bovverd]

They are going to try and sell you a mortgage through there financial arm.

I hate estate agents that do this - I was once told I couldn't view a property with an EA until I'd spoken with their financial advisor !!

I am only looking to rent with this EA.

[malvolio]

They are going to try and sell you a mortgage through there financial arm.

I hate estate agents that do this - I was once told I couldn't view a property with an EA until I'd spoken with their financial advisor !!

It's not necessarily a bad thing, unless they are limited to their own providers (in which case don't even bother). My last one wasn't and came up with exactly the same solution as my own IFA did. They are required by law to offer the best deal, after all, and it does simplify some of the paperwork.

Of course, they get a payback from the mortgage company, but that would't come to you anyway.

[Archangel]

Hi Can anyone help with this. I have browsed the forums for a similar discussion but didnt spot anything.

I am currently in the process of moving house and have received a credit / employment document from the Estate Agents to complete.

A section of the document is employment status and asks if I am employed or self employed. It also requests an annual gross salary.

Now I am set up using IR35 and do not believe myself to be self employed but the issues I have are:

a) If I mention IR35 to this particular estate agent I do not believe they will understand it enough to NOT class it as self employment where they will then most probably demand two years of accounts which I currently do not have.

b) If I were to calculate my Gross salary using conventional methods the Agents may attempt to calculate my Net by deducting 40% instead of the 20% I pay on IR35. This will then make my take home pay seem considerably lower than it actually is and may result in being rejected on the application.

Is it possible or advisable to calculate a different gross annual projected figure which if the agents then apply a 40% deduction it would then total my accurate take home figure.

Thanks in advance for your time with this.

How do you manage to only deduct 20% of your gross?

[glashIFA@Paramount]

Hi Can anyone help with this. I have browsed the forums for a similar discussion but didnt spot anything.

I am currently in the process of moving house and have received a credit / employment document from the Estate Agents to complete.

A section of the document is employment status and asks if I am employed or self employed. It also requests an annual gross salary.

Now I am set up using IR35 and do not believe myself to be self employed but the issues I have are:

a) If I mention IR35 to this particular estate agent I do not believe they will understand it enough to NOT class it as self employment where they will then most probably demand two years of accounts which I currently do not have.

b) If I were to calculate my Gross salary using conventional methods the Agents may attempt to calculate my Net by deducting 40% instead of the 20% I pay on IR35. This will then make my take home pay seem considerably lower than it actually is and may result in being rejected on the application.

Is it possible or advisable to calculate a different gross annual projected figure which if the agents then apply a 40% deduction it would then total my accurate take home figure.

Thanks in advance for your time with this.

If you're looking at renting a property that they have on their books then it's a straightforward check to assess that you can afford the rental on the property, both now and going forward. This is no bad thing. They act for the owners of the property and don't want to be putting in a bad risk tenant. As the rental company they have a duty of care to the property owner.

[monkeyBoy32]

They are going to try and sell you a mortgage through there financial arm.

I hate estate agents that do this - I was once told I couldn't view a property with an EA until I'd spoken with their financial advisor !!

Makes me so angry.. I went into an estate agent, asked if I could view a couple of houses, they asked for my phone number so they could give me a call when the houses were available for viewing. Next day I get a call from some p...k in the city saying "Hi, you spoke to one of my colleagues yesterday, I've got you booked in to come and meet me tommorrow to discuss your financial requirements - can you do 5.30?"

Told him I don't deal with aggressive sales and that I wouldn't use that EA from now on..

How these people sleep at night I'll never know...

Sorry.. doesn't answer the thread.. just fancied a rant..

[ittony]

If you're looking at renting a property that they have on their books then it's a straightforward check to assess that you can afford the rental on the property, both now and going forward. This is no bad thing.

Rubbish, it's a very bad thing. It prevents the newly self employed from securing a roof over their heads and frankly it's absolutely none of the owner's or agent's business. What details of the landlord's financial position does the tenant get to see? None at all. Yet the consequences for a tenant who rents from a landlord with untenable finances are much worse than the other way round.