I always knew we were right....

[Freelancer Financials]

Don't UK lenders only look at UK taxable earnings?

No.

HTH

If they're UK residents, they will only use UK TAXABLE EARNINGS.

[cojak]

Just simply tell them that they will struggle to get a mortgage on these schemes.

Virtually all the high street lenders have made it clear that they do not want applications from buyers who operate under these Offshore Umbrella/Loan Trust schemes.

The only reason some get a mortgage is because dodgy mortgage brokers disguise them as working through PAYE brollies.

A useful point to know.

[NickNick]

Some of the bigger recruiters already have a policy of not dealing with anything dodgy. Contractors either have to operate through their own company or be on PAYE.

Appropos of nothing, I work with a contractor from the Isle of Man. No, really. And his contracts are becoming fewer an farther between as more and more agencies see the address and won't touch him with a barge pole.

[BlasterBates]

Appropos of nothing, I work with a contractor from the Isle of Man. No, really. And his contracts are becoming fewer an farther between as more and more agencies see the address and won't touch him with a barge pole.

Well even if he is from the Isle of Man he should be taxing himself in the UK even for a short term project, so he should be using a UK Ltd, which should have an address.

Non-residents are still liable for tax on the work they do in the UK.

[Wanderer]

Appropos of nothing, I work with a contractor from the Isle of Man. No, really. And his contracts are becoming fewer an farther between as more and more agencies see the address and won't touch him with a barge pole.

Lots of people in the UK were born in other countries. It doesn't matter where they are "from", what matters is where they are currently resident for tax purposes....

For many years, agencies have been telling me that they will only do business with a company which is registered in England and Wales and they won't deal with off-shore ones. Of course there is nothing to stop a non tax resident contractor setting up a company in England which pays all the money to one in the IOM, so long as the correct amount of tax is paid in the UK.

[BrilloPad]

Just simply tell them that they will struggle to get a mortgage on these schemes.

Virtually all the high street lenders have made it clear that they do not want applications from buyers who operate under these Offshore Umbrella/Loan Trust schemes.

The only reason some get a mortgage is because dodgy mortgage brokers disguise them as working through PAYE brollies.

Good point. In fact MOntpelier setup their own mortgage broker to get round this. They got me a mortgage.

[borderreiver]

For many years, agencies have been telling me that they will only do business with a company which is registered in England and Wales

What, would they not do business with Scottish or NI ones?

[Freelancer Financials]

Good point. In fact MOntpelier setup their own mortgage broker to get round this. They got me a mortgage.

Those were different times BrilloPad, it's all changed now. I don't think they have a mortgage broker anymore.

There is no way to get round this today, unless a broker disguises the trading structure as working through PAYE Umbrella. This is fraud.

[NickNick]

Lots of people in the UK were born in other countries. It doesn't matter where they are "from", what matters is where they are currently resident for tax purposes....

For many years, agencies have been telling me that they will only do business with a company which is registered in England and Wales and they won't deal with off-shore ones. Of course there is nothing to stop a non tax resident contractor setting up a company in England which pays all the money to one in the IOM, so long as the correct amount of tax is paid in the UK.

This feller lived in Douglas and commuted mon-Fri, so I have to assume that his ltd co (or whatever the equivalent is) was set up there.

[Wanderer]

What, would they not do business with Scottish or NI ones?

That was the impression I got though they may have been happy enough with any company in the UK. I know some people who live in Scotland who have companies registered in England to avoid incorporating a company under Scots law. Does anyone here have a UK company which is registered somewhere which NOT England and Wales?

Personally, I'd be cautious because of the potential difficulty of dealing with companies which operate under different legal systems.

This feller lived in Douglas and commuted mon-Fri, so I have to assume that his ltd co (or whatever the equivalent is) was set up there.

I would guess that it depends on if he is in the UK for long enough to become resident here for tax purposes. If he is and a client/agency is paying an IOM company there is the risk that at some time in the future HMRC could come after the client/agency for PAYE/NI from the contractor's earnings and they won't want to carry that risk.