trying to buy a new home and concerned about my SE income..help please...

[PinkChick]

obviously as a child minder there are lots of things we can take of our total income to help reduce our tax bill..great..but now we want to move house and instead of seeing my earnings for 08/09 as being 17k, because i was able to take off food resources etc my profit shows as 10k..meaning much less if we need to apply for a new martgage...how can i get round this in order to ensure we get the mortgage, i have all my records showing what ive earned, paid etc etc..would they take into account my total income before all my expenses where taken off?...pretty desperate for advice right now so any would be much appreciated. Thankuyou

We have the same problem and I think the only way round it is having a couple of years of not putting all those expenses down? When we moved 4 years ago, we went self cert otherwise would never have got this house. Unfortunately with the way everything went after, they no longer offer self cert (as far as I know) - it's a lot harder for certain people to get mortgages these days :( I really hope there is a way round and will watch this thread with interest x

If you have to spend 7k on your expenses of running the business then that money isn't available to pay off a loan so it shouldn't be taken in to account anyway. I know it's hard when trying to buy a house - the thing you want is always out of range - but your lender should make a loan on the basis of what you have available to pay it.

Yeah but with Childminding there are quite a few things we're allowed to claim for that we would be paying anyway as a SAHM so some of the expenses aren't always due to the actual childminding if that makes sense.

Oh I see - well yes in that case I think the only thing to do is not put those down for a bit - or maybe talk to your lender first and see how they view income for the self employed?

i am wondering if, as i bought a lot of resources toys etc in first couple of yers and now its just upkeep that they will take that into account, along with info i can provide to show i have x amount coming in each week/month now which is all tied in with contracts so wont change immediatly .
if they base it on the lower amounts then we cant afford to move at all 8-(

plus dp is employed so wondered if they could base it more on him? oh i dont know, ill have to speak to ifa tomorrow, thanyou all for your advice

Agree best to speak to IFA. I THINK you can choose to do X times one salary or Y (lower amount) times both salaries added together? You definitely need to talk it through with someone though. Good luck and let us know how you get on :)

thanks chick will do..you enjoying my songs tonight lol.x

LOL, couldn't keep up, very good! hehe