Who am I?

[boredsenseless]

I remortgaged through Halifax 12 months ago.

They initially asked for 2 years accounts, but as its a joint app they also asked for the wife's payslips.

At the end of the meeting I summarised you need the following

My wife's last 3 payslips
2 years of my companies accounts
... do you need to see my payslips?

When I said the last statement the need for the co accounts dropped since they don't care who pays you just so long as you get paid from a registered company.

Moral - pay yourself enough in salary at least 3 months before a mortgage application.

[Taxman]

Why are there contractors asking questions like this? If any contractor is under the misapprehension that he is self-employed (which would in fairness be understandable to a layman otherwise), he is being failed miserably by his accountant. Don't put up with it.

[Lucifer Box]

In 1989 I only had one years accounts - Halifax gave me a 3x mortgage for 100% of the purchase price. It was the middle of a boom when companies were very eager to lend though.

For my most recent re-mortgage, it was initially a bit difficult, they asked for two years accounts I think, but not all my contract income in that time had gone through my company, and I had only been working half the time, so had to write them a detailed explanation. Once they realised the mortgage was for only one third the value of the property, it suddenly became a lot less difficult and I got the impression that the letter they wanted from my accountant was just a formality.

Mortgages are for permies anyway. If you can't buy your house with uncut diamonds you're not a real contractor

[IR35 Avoider]

Is that because you have over 3 years accounts?

In 1989 I only had one years accounts - Halifax gave me a 3x mortgage for 100% of the purchase price. It was the middle of a boom when companies were very eager to lend though.

For my most recent re-mortgage, it was initially a bit difficult, they asked for two years accounts I think, but not all my contract income in that time had gone through my company, and I had only been working half the time, so had to write them a detailed explanation. Once they realised the mortgage was for only one third the value of the property, it suddenly became a lot less difficult and I got the impression that the letter they wanted from my accountant was just a formality.

[suchabigask]

Nice replys

Come on! I'm a contractor - I have no need for things such as mortgages - suitcase of cash is better (and no, I am not Russian).

Cheers for the info though.

[The Late, Great JC]

Is that because you have over 3 years accounts? I am returning to contracting after 3 years in a permanent job. So the accounts from my previous 5 years contracting dont help.

Your salary from your permie job would though...

[paulb567]

Try giving www.contractormoney.com a call. I've only been contracting for 5 months and they have just found me a mortgage provider willing to lend me a stupid amount of money at one of the market leading rates.

[omen666]

Is that because you have over 3 years accounts? I am returning to contracting after 3 years in a permanent job. So the accounts from my previous 5 years contracting dont help.

[IR35 Avoider]

You are now seeing the problems with low salary and high dividends. Unless you have a bank manager who knows your account and banking history well you will probably be going down the self certification route which costs more.

You don't have to go for more expensive mortgages. I've mortgaged/re-mortgaged several times as a contractor, the first time in 1989. I have never had a problem getting the lender to base my mortgage on all my contract income, and have always had mainstream mortgages from mainstream lenders at competitive rates. Usually what they ask for is a letter from my accountant confirming my (i.e. the companies) contract income.

[Lucifer Box]

Slightly off topic, but related....

So should you declare yourself as an employee when applying for loans or mortgage? I guess the problem in these circumstances is the low basic salary?

Absolutely. You aren't self employed just because you're also the MD of the company you're working for.

The acid test is: have you registered with your local tax office as self employed and are paying the self employed NI stamp? I suspect not.

Anyway, if you are a contractor, what are you doing messing around with loans and mortgages? Surely you just waft the Amex Black card and cash in some of the gold reserves to pay the bill?

On a serious note, when applying for credit cards, I always put down MyCo as my employer (and my name is in the company name), plus my name as the employer's contact. I have never been contacted to confirm the status of my employee (me) yet. Obviously if I were, I would tell them he was a good for nothing so-and-so.

[boredsenseless]

Well you have a payroll record with your company which would with hold tax and NI if you paid enough so I think you have your answer - 100% employee.

You are now seeing the problems with low salary and high dividends. Unless you have a bank manager who knows your account and banking history well you will probably be going down the self certification route which costs more.

Also (and I know its a contentious issue on here) by paying your self the minimum amount possible before incurring tax you do leave yourself very exposed if you ever get the man from HMRC knocking. PLease tell me you don't split your dividends with the missus or mr!!!

[omen666]

Slightly off topic, but related....

So should you declare yourself as an employee when applying for loans or mortgage? I guess the problem in these circumstances is the low basic salary?

[Lucifer Box]

Bet you're not regarded as self employed, whatever... but I'm sure much more switched on members of the congregation than me will be here to advise you soon...

The giant alien lizard is correct. You fill in the employee section.

[suchabigask]

Ok, admittedly this is probably a stupid question but there goes;

I am a contractor with my very own limited company. My company pays me the basic personal allowance (£4895) in salary in my capacity as Director, the rest dividends. Heres the question....am I self-employed in the eyes of Inland Revenue for my personal self-assessment, or an employee of my Ltd Company? I am not sure which self-asssessment to complete???

I am registered on my company payroll, and complete the P35 jazz, so am thinking I complete the self-assessment as an employee, not self-employed.

Is that a crazy question?