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Mortgage for freelancer?

(7 Posts)
Sahara123 Sat 01-Apr-17 22:54:10

my daughter & her partner are trying to get a mortgage for their first flat together. He works freelance, in the film industry, and has done for over three years continuously. He has payslips for the whole period - lots of them, as jobs can be for as little as a week sometimes.
They have tried using a mortgage advisor who has been unable to find then anything so far. As he has a big pile of payslips lenders are unwilling to sift through them all, and one has asked to see P60's. However, when he received these they were wildly inaccurate, showing, for example, an income of £1000 in one year when it should have been considerably more than that. His payslips are PAYE & show income & tax etc paid. This I find hugely concerning as this is causing big mortgage problems, and also where is all his tax going? HMRC have said there is nothing they can do to help.
So, does anyone have any experience of this, the P60 problem, or freelance mortgages in general? Thanks

celtiethree Sat 01-Apr-17 23:08:09

how is he set up: ltd company, umbrella company or sole trader??? Regardless or which way he should have accounts that back up his income. Doesn't he sum it a tax return every year to declare his income??? Who is producing his P60??

Sahara123 Sat 01-Apr-17 23:17:31

He's Freelance, not self employed, so doesn't do accounts or tax returns. He spends 6 months working for one company, then various other companies for the rest of the time. So PAYE, tax etc deducted by them. I'm not sure about a P 60, doesn't that come from HRMC as a statement of tax & earnings for the year?

celtiethree Sat 01-Apr-17 23:42:44

Freelance normally means self employed. Is he hired via agencies that provided the payslips etc?? Companies typically would take someone into their books for such short periods. P60 is usually or used by your employer at the end of the tax year. You use it to complete your self assessment, it's not provided by HMRC, if he is receiving payslips directly from companies then they should be providing him with a p45 at the end of each period of employment.

celtiethree Sat 01-Apr-17 23:43:56

It should have said p60 is usually provided by your employer.

sharktoothcushion Sat 01-Apr-17 23:52:55

He sounds a bit dodgy...

If he has PAYE deducted then he isn't freelance he just takes lots of fixed term contracts.

I am freelance as a business change consultant, looking to buy a second home on buy to let for a pension option, hence why I read this thread.

All my contracts state my business name, not my personal one, I employ an accountant and pay myself in dividends and a small payroll. (Not enough to attract too much NI)

I think he has a massive credit card in all honesty

Girlwhowearsglasses Sat 01-Apr-17 23:55:40

Freelance = self employed. Film industry practice is that you do get payslips etc - usually you have to give them tax code to say you're self employed - perhaps he hasn't registered self employed and they've paid him PAYE.

Regardless he should be able to get a mortgage with the right broker. He should ask about For a broker in the industry as they all face similar issues. He should also be a BECTU member and they can advise on self employment etc. He really needs a proper accountant that knows about film. He may have to get last three years of accounts done with an accountant to show to mortgage provider.

It's perfectly possible

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