Childminding and getting a Mortage

[kimnolan87]

Hiya,

I've been childminding since last September, and things are going quite well!

Now I know that to even apply for a mortage as a self employed person, I need to be able to show three years accounts.....but, how do they look at my accounts?

Would I need to show increased profit each year, ie. money left after all the tax deductable items or would they look at how much I earn before tax?

Speaking to a friend who owns a restaurant, he said he gave himself a wage and then showed profit, but his wage was minimal.....

We're just forward planning and hoping to start saving....

Thanks,
Kim x

[vikiwizz]

I think if you're self employed its 2 years books :)

[skytvaddict]

I am in the process at the moment. I had to request SA302s from HMRC which show my income. I had to get 3 years but had worked 3 years anyway. I phoned and they took a couple of weeks to come through. We were not very impressed with our mortgatge advisor as they weren't mentioned at the beginning and she knew I was self employed!

HTH

[Chatterbox Childcare]

They will want to see earnings after deductions as this is effectively your profit BUT when I did my mortgage I selected my mortgage advisor on experience and contacts. He sent me to a Manager he knew who considered my household bills that I took as expenses and this made a lot of difference.

I would have thought that you friend was a limited company if they are taking wages and the wages are low due to maximising their tax relief with corporation tax (another story and we don't need to go there)

[loocyloo]

Some banks will be happy with your gross income & others will only consider your net income once all expenses & 10% wear & tear etc removed!

It is worth using a mortgage advisor.

Good luck!

[MrAnchovy]

Most mortgage providers have changed their procedures in the last 3 years and will now only accept HMRC form SA302 which shows the profit you have reported to HMRC. If you do a written tax return HMRC will send this to you automatically, otherwise you have to ring and ask for it.

[jo.jo76]

Most mortgage providers have changed their procedures in the last 3 years and will now only accept HMRC form SA302 which shows the profit you have reported to HMRC. If you do a written tax return HMRC willsend this to you automatically, otherwise you have to ring and ask for it.

Is self assessment ok for mortgages or do you have to have your books done by an accountant?

[MrAnchovy]

Mortgage providers used to want to see accountant's reports but mostly they have now dropped this in favour of the SA302.