Self employed and mortgages

[courtjb91]

Hi geeks,

So the time is coming for me to fly the nest. My boyfriend and I have started saving and I've got an accountant to do my books..... I've never been so stressed lol

I'm declaring everything and working extra hours to show my earnings are enough for a mortgage, I plan to do this for the next 3 years as I believe most mortgage companies need 3 years of accounts from self employed people.... my issue is my taxable earnings as shown on my SA302 are sooo low, alot less than i was expecting after deductions and I don't feel shows my true 'take home' and definitely not enough for a mortgage but my tax is so high it's crippling me...... next year if I put less deductions through (chair rent, petrol, website fees, advertising, tools ect ect) my sa302 earnings will of course be subsantially higher but so will the tax which mean there goes my monthly deposit into our savings

I guess I'm just moaning I know it has to be this way How did you all cope during this period?

Feel like it's a lose, lose situation.... I either work hard, declare everything, put through all eligible deductions so my tax is more affordable so I can save a deposit and my taxable earnings are not enough for a mortgage

Or

I work hard, declare everything, put through barely any deductions and my tax is higher so I can't put money away for a deposit but my taxable earnings are more attractive to mortgage companies

Feel like banging my head against a wall.

From
Stressed out 25yr old lol

 

[Eloise86]

If you are declaring everything it will show your true earnings..... maybe you need to increase your prices? When I was renting a chair I was shocked when I got my accounts and how much I was paying out. Your accountant should be able to guide you on what to do. I agree if you don't claim for all your expenses you will pay more tax. You tend to need 3 yrs worth of accounts when you're self employed to get a mortgage although we managed to get one with just one years accounts xx

 

[Caroline_music_]

I feel your pain, the housing market in this country is a joke.

Firstly, go and see a mortgage adviser, I saw one recently from HSBC and he said it was 2 years worth of books. See what they say as they might be able to advise you the best course of action. The more information you have the better. Good luck!