Reply to: Year end accounts

[Lance]

I've got a rough idea of income, turnover and personal tax due etc., but guessing mortgage lenders won't want fag packet calculations by the applicant for a mortgage!

I think a mortgage lender would be happy with a "summary set of accounts that's not been finalised yet".
If you offer them that and avoid phrases like "fag packet calculations" then they'll be fine as it sounds like you're only applying for a mortgage in principle at the moment. They're interested in your ability to pay, which is judged by a combination of factors.

[northernladuk]

Yeah, been thinking about binning then off.. they've also been late with a vat return too (gave me -2 days to pay it!). is it a right hassle to swap out accountants though?

Shouldn't be. Probably less than staying and getting messed about. If you can get your year end out your old outfit you don't have much of the year to backtrack and it's very easy in Freeagent.

Freeagent offers a free trial so you can have a play and see what you think.

[Contractor Stu]

Yeah, been thinking about binning then off.. they've also been late with a vat return too (gave me -2 days to pay it!). is it a right hassle to swap out accountants though?

[northernladuk]

I'd seriously think about swapping accountants with that service and FA as well. Double bonus. You will wonder how your managed without it.

Halifax was offering the best contractor mortgage when I got mine a year or so ago but just depends on meeting their criteria. They differ between lenders.

[Contractor Stu]

No, not on free agent. Using cleveraccounts via JSA accountancy. It will calculate corp tax, but can't figure out how to get it to tell me how much I've taken as dividends.. I'd have to go through it manually and it's..... clunky.

On the mortgage front it does sound like I need a specialist broker though. I spoke to Halifax earlier though (my current mortgage people) and they reckon should be okay with them as long as I have current work and been in the same industry for the last two years which I have. But, sounds like I still need specialist advice to get the best deal, but it sounds doable.. if they ever sort my accounts

[MrButton]

To add to everyone’s responses Which are all good advice.

I’d also recommend contacting a broker and your existing lender (if you have one) to gauge exactly what you will need.

Some will require 2+ years of accounts. Some won’t require much at all apart from a current contract.

So worth at least finding out.

I’ve not been through the process yet but that’s just based on reading and convos with other contractors. Their advice has always been to talk to brokers who deal with these lenders day in day out.

[northernladuk]

Are you on Freeagent?

[Contractor Stu]

That's not great TBH. In my opinion ignore any time before your first poke (as until that they'd likely be on the firm's to do list, but quite far down). From then, a couple of weeks should be perfectly achievable.

Depending upon how messy the figures are, staffing levels, how many other clients are desperate for their stuff, I'd suggest anywhere from a couple of days to a couple of weeks is reasonable.

Yeah, this my feeling too which is why I asked the question. I get they have a several months to do it, but the accounts are really straightforward. One man band with a ltd company, no other employees, directors or shareholders.

Also, thanks for mortgage pointers northernlad, appreciate the input

[Maslins]

Okay, thanks everyone. I've already poked them a couple of times (and let them know why). They responded by saying they've flagged them as an urgent set of accounts on the 21st August.

That's not great TBH. In my opinion ignore any time before your first poke (as until that they'd likely be on the firm's to do list, but quite far down). From then, a couple of weeks should be perfectly achievable.

Depending upon how messy the figures are, staffing levels, how many other clients are desperate for their stuff, I'd suggest anywhere from a couple of days to a couple of weeks is reasonable.

[Spoiler]

I was in a similar position this year (End March EOF, end June, looking to change mortgage)

Emailed my accountant, and they had the accounts ready in 2 weeks.

^ Similar thing last year. End August was company FY end, applying for a mortgage (bank wanted to see Ltds accounts) - spoke to my accountant, they had it ready in a week. All good !

[jmo21]

I was in a similar position this year (End March EOF, end June, looking to change mortgage)

Emailed my accountant, and they had the accounts ready in 2 weeks.

[northernladuk]

Not necessarily. Yes some lenders will want to see SA302s, but many still have forms requesting company turnover/profit etc.

Oh, interesting. I can't remember having to supply any of that one for the contractor specialist ones I've applied for but OK, fair point.

OP. Mortgages as a contractor can be a bit of a minefield as some lenders won't accept the money in the company or the fact you are in contract and have earning potential etc so can be difficult for people staying under the tax thresholds to prove their income. There are a number of offerings that are related to contracting that (I guess) do look for what Maslins say but also need x months of a contract left and other criteria.
Have a chat to a contractor specialist who will look through these offerings for you. I'd recommend John Yerou at Freelancer Financials. They've done a few for me.

If you do have questions about contractor mortgages you know how to use the search function now

[Contractor Stu]

Okay, thanks everyone. I've already poked them a couple of times (and let them know why). They responded by saying they've flagged them as an urgent set of accounts on the 21st August.

[Maslins]

I think you are confusing your business year ends and your personal tax year ends. A mistake you need to rectify quickly.

Not necessarily. Yes some lenders will want to see SA302s, but many still have forms requesting company turnover/profit etc.

[Maslins]

It's not unreasonable, no...but have you given them a prod? If not, the deadline won't be for another ~4 months, so whilst I don't condone leaving it to the last minute, there's plenty of time if they're not aware of any particular reason to do quickly.