Tax return wanting to apply for a mortgage based on self employed earnings.

[starpatch]

Hi I'm planning to apply for a mortgage in April basically as soon as HRMC reply to my self assessment. I'm thinking I shouldn't claim the £1000 allowance as it will make my earnings look more? I would still claim my expenses so I don't think I would be doing anything dishonest. (I would have to pay more tax). Anyone know if this makes sense. Thanks

I should add I do full accounts in any case, not cash based accounting. My income is so low that that amount could really make a difference to what I might be lent.

Pay as little tax as you possibly can legitimately and find a decent broker who you then provide with a full spreadsheet of your income and expenses. The less tax you pay the more useful income you will have and the larger repayments you will be able to afford would be my expectation.

What did your mortgage broker say?

I just spoke to Nationwide, I have my current mortgage with them.

Can you clarify. You mention not claiming the £1,000 but then say you claim all your expenses. You can't claim the £1,000 on top of your expenses anyway? It's one or the other.

I know when BIL did that he didn't submit a big expense - cost of equipment or van purchase maybe, and then revised the tax return after he got his mortgage offer. However if its only £1,000 I'm not sure its worth the hassle anyway incase you get something wrong.

You need an accountant, it doesn’t sound like you know how to complete the tax return

Oh and it’s fraud to declare one figure to the mortgage company and a different one to HMRC

Nationwide will average your last 2 yrs SA302's anyway.

There are a few companies that will use just the most recent yrs income.

Do you need your sa302 for 18-19 to apply?

HMRC no longer issue SA302 forms

The lender will use the accountant provided ones, or if self assessment they are available on their gateway account.