One of my payroll client (a single director with a Limited company registered in Jan 2015) got a full time job in March 2015 working 3 days a week earning £20K per year salary via payroll. She is also on £10K salary via her limited company for the other part-time jobs. The client is planning to apply for mortgage by December 2015 basing on income of £30K and a Mortgage broker has asked her to bring 6 months worth of payslips for the 2 jobs and personal bank statements in order to secure a mortgage. Now the client wanted to know if this will work as she is now paying more in tax as HMRC has asked her to be on BR tax code for one job from now onwards. Has anyone done this before or is there any other way of declaring her £10K income as her first year end is January 2016? Thank you in advance.
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Gross Income
My somewhat limited understanding on this is that they will be looking at the total gross income for PAYE purposes and therefore the tax paid is a bit of a red herring.
BR with both employers?
Hi,
I believe Stratty is right. The mortgage company/ bank will look at her gross income (before tax).
However, from the figures stated, your client is on BR both with her full time employer and her limited company which, if resolved should cancel out the problem.
Clearly, I assume there is no significant issue with her prior year income - aside from there being a potential issue with her final month's wages from the F/T employer,
You (or your client if you don't hold a 64-8 for her personal affairs) should contact HMRC to sort this out.
The only other thing I could think is that the main employer is now listed as her only or main job, hence she may receive the accumulative tax allowance in her payslip for May 2015 from the other employer?
All said, the mortgage company should consider the income to be £30K before tax in their assessment.
However... from a completely different viewpoint... don't be surprised if the mortgage company refuse to consider any income from the company - it's not unheard (particularly with new companies).