Mortgage implications

**mcquiggd** · 8 November 2005, 13:58

Keep quiet and pay as before.

Nothing is certain in the contractors world except you'll pay taxes...

You may well end up being permanent again in 6 months or less, depending on the market, personal circumstances, and the contents of the sacrificial chickens entrails...

The One Account didnt care as long as I paid the rent and had the relevant insurance policy.

P.S dont go contracting, especially now, unless you can afford to live for 3 months without an income. If you do jump, put around 25% of your first contracts take home pay into paying off credit cards, a high interest bank account, premium bonds or a mix..... so 1) you dont lose the money 2) you have quick access to it if you need to pay the mortgage 3) you are cutting down monthly repayments just in case you dont land another contract when this one ends, 4) you might just win a million tax free.

**Ivor1** · 8 November 2005, 14:12

I just remortgaged with my current provider and never told them of change in status.

I'm in a catch 22 situation though now, I currently use a composite, all the mortgage companies are fine with that and have offered me the usual permy deals, however I want to move away from the composite asap and got ltd, but then I need a years of accounts or go self cert, with a rate way above the odds for 3 years

. I'm basically having to stay with my composite until my flat sales goes through and its just fallen through.

To top it off I got a nice letter from the 'HM Inspector Of Taxes' on regarding my PAYE status. I'm with one of the biggies

**malvolio** · 8 November 2005, 14:22

Uh oh.... How's your investigation insurance??

Also, which particular biggie are you with - might be interesting finding out if you are part of a wider sweep or merely unlucky.

**MrsGoof** · 8 November 2005, 14:25

I remorguaged about a year ago (Virgin One), and they didn't want to see accounts or anything and wern;'t bothered about change of status.

**Lucifer Box** · 8 November 2005, 14:35

Originally posted by DaveB

I'm starting my first contract in January. My current mortgage is based on my, soon to expire, permanent status. Should I tell my mortgage lender about the chnage in circumstances or just keep quiet and carry on paying as before.

Just keep quiet, who's to know?

**DaveB** · 8 November 2005, 14:36

Looks like I'll just keep my head down then. By the time the fixed rate preiod expires on this one I should have enough in the way of company accounts etc to keep a new lender happy, that or I'l have run screaming back into the arms of permanant employment

**Ivor1** · 8 November 2005, 14:52

Not hijacking

I have insurance so covered. Had to laugh though at the notice, one of the first lines was 'As you will be paying 40% tax on at least some of your income from xxxxxxxxxxxx', in there eyes Im already guilty.

I might be one of the first they look at as have been with them from start.

**Lucifer Box** · 8 November 2005, 15:01

Ivor, which composite are you a part of? You may very well be the first of a general sweep as, to an inspector looking to meet his annual target, a composite represents a nice bundle of cases all neatly wrapped up in one place.

Good luck. Do you have anything to fear (other than the IR35 fight) or is everything legit and above board? No dodgy EBT schemes or unreceipted expenses I hope?

**Ivor1** · 8 November 2005, 15:46

Originally posted by Lucifer Box

Ivor, which composite are you a part of? You may very well be the first of a general sweep as, to an inspector looking to meet his annual target, a composite represents a nice bundle of cases all neatly wrapped up in one place.

Good luck. Do you have anything to fear (other than the IR35 fight) or is everything legit and above board? No dodgy EBT schemes or unreceipted expenses I hope?

Cant say been told not to or could invalidate IR35 insurance, not sure if true but dont want to risk it.

Nothing to really worry about, not EBT standard dividend and min wage set up. I've always been very careful to collect up info while on contract to show I wasnt seen as permy, I have my ID card that is a different colour for permies as contractors, I have ALL the emails that say this only applies to permy staff not contractors. My main client was pretty clued up and didnt want me to be seen as an employee either.

Not to worried I recon I only owe £15k if I fail IR35 in the end, and insurance should cover that, or at worst Ive stashed the money just in case. I've been netting around 69% on the scheme and didnt claim expenses.

Mortgage implications