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Mortgage question?

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  • 19-07-2013 12:25am
    #1
    Registered Users Posts: 6


    Hi,
    I have my own business with 2.5 years which is going really well!it employs just myself, I am not registered for vat as my accountant told me there is no point as I barely make over the amount needed to register for it! I earn on average 800€ a week / 3000€ per month!
    My accountant just puts down I earn 400€ a week on my books! He dosnt want me paying more tax than I have to!

    I'm renting a 500€/month house with 3years and feel I want to buy when market is good!
    I have seen a house located close to my work and my home place which is 275.000€ I am hoping they would accept 245-250.000! Would I be able to get a mortgage considering I am only down to be earning 400€/week?

    Could I tell the bank that I actually earn more or would they get me in trouble?i have saved 50,000 for deposit ! Do u think I have a chance? I could probably pay off 1200/ month towords mortgage!

    Sorry for long post just needed to explain situation!


Comments

  • Closed Accounts Posts: 121 ✭✭mistermano


    lol


  • Registered Users Posts: 1,443 ✭✭✭killers1


    Patra wrote: »
    Hi,
    I have my own business with 2.5 years which is going really well!it employs just myself, I am not registered for vat as my accountant told me there is no point as I barely make over the amount needed to register for it! I earn on average 800€ a week / 3000€ per month!
    My accountant just puts down I earn 400€ a week on my books! He dosnt want me paying more tax than I have to!

    I'm renting a 500€/month house with 3years and feel I want to buy when market is good!
    I have seen a house located close to my work and my home place which is 275.000€ I am hoping they would accept 245-250.000! Would I be able to get a mortgage considering I am only down to be earning 400€/week?

    Could I tell the bank that I actually earn more or would they get me in trouble?i have saved 50,000 for deposit ! Do u think I have a chance? I could probably pay off 1200/ month towords mortgage!

    Sorry for long post just needed to explain situation!

    As far as the bank are concerned you earn €20,800 per annum.... I'm guessing they won't be attracted to lending you income X 10!


  • Registered Users Posts: 4,502 ✭✭✭chris85


    The bank will assess on the income on the books.

    The bigger question here is why not pay your taxes like everyone else? You will get audited sooner or later and the Revenue will be interested to see how you have been getting so much saved on such a small income. Your accountant says he doesnt want you paying more tax than you HAVE to but you HAVE to pay tax on everything you earn and a choice is being made not to. Hope it catches up with you.


  • Registered Users Posts: 10,322 ✭✭✭✭Marcusm


    Patra wrote: »
    Hi,
    I have my own business with 2.5 years which is going really well!it employs just myself, I am not registered for vat as my accountant told me there is no point as I barely make over the amount needed to register for it! I earn on average 800€ a week / 3000€ per month!
    My accountant just puts down I earn 400€ a week on my books! He dosnt want me paying more tax than I have to!

    I'm renting a 500€/month house with 3years and feel I want to buy when market is good!
    I have seen a house located close to my work and my home place which is 275.000€ I am hoping they would accept 245-250.000! Would I be able to get a mortgage considering I am only down to be earning 400€/week?

    Could I tell the bank that I actually earn more or would they get me in trouble?i have saved 50,000 for deposit ! Do u think I have a chance? I could probably pay off 1200/ month towords mortgage!

    Sorry for long post just needed to explain situation!

    My advice would be to find a better accountant; your tax burden won't exceed 20% plus USC on half your income. If you want to buy, you'll need to be seen to be earning what you earn. The accountant will get you in trouble.


  • Registered Users Posts: 4,153 ✭✭✭rameire


    is the 50k savings in a bank account?
    if so, the revenue more than likely know this.

    🌞 3.8kwp, 🌞 Split 2.28S, 1.52E. 🌞 Clonee, Dub.🌞



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  • Registered Users Posts: 7,209 ✭✭✭shamrock55


    You have just admitted to being a tax cheat on a public forum hope nobody from revenue is reading this they could take that 50 grand off you if they ever find out what ur up to and your accountant would be in the s**t too


  • Registered Users Posts: 55 ✭✭funstuff


    I think everybody is being a little harsh here.
    When self employed you can take whatever income you want and plough the rest of the excess monies into the business for growth, purchase of equipment, stock or premises etc.

    e.g. you make a profit of 50k - you take an income of 20k and plough the 30k back into the business and still pay capital gains on this. no capital gains on the 20k as it is classed as an expense.


  • Registered Users Posts: 4,502 ✭✭✭chris85


    funstuff wrote: »
    I think everybody is being a little harsh here.
    When self employed you can take whatever income you want and plough the rest of the excess monies into the business for growth, purchase of equipment, stock or premises etc.

    e.g. you make a profit of 50k - you take an income of 20k and plough the 30k back into the business and still pay capital gains on this. no capital gains on the 20k as it is classed as an expense.

    Yes but doesnt sound legit in this case. The post sounds like earning €800 per week and only paying tax on €400 as accountant says this is ok. The OP is taking home €800 per week by sounds of it here. This is obviously implied by post saying "I am only down to earn €400 per week".


  • Registered Users Posts: 55 ✭✭funstuff


    Possibly - But again you are speculating - Never assume until you know the full story. Ask more questions if you think a statement is implied. A qualified accountant will not give this kind of advice as they are shooting themselves in the foot if his client is ever to be audited. An accountant works off the same fee whether or not his client is paying the €400 or €800 regardless. Being self employed I can see why he would take €400 and leave the other €400 as reserves and for growth to further expand the business.

    My two cents and not having a go :)


  • Registered Users Posts: 6 Patra


    I have saved the 50 thousand since the day I was born and through hard work! I am not cheating as many people in my field of work actually don't even register as a business And claim dole and all the benefits possible!! There is a business nearby me that does this and that is cheating! I have done everything by the book as far as I'm concerned why would I shoot myself in the foot by putting through every cent I earn? I sometimes only do earn 400€ a week just sometimes I earn more but I am just bring extra careful and saving as much as I can incase someday I can't work etc! I could afford to pAy myself more I could put this money into my business Acc but instead save it! I was told by many financial advisors that my business would only go over the 37.500grand mark by a small amount and then I would have to register for vat which would shoot my prices up! I am just trying to do the best i can in the current climate.
    I saw this house and it would be better paying this towards house than renting i thought.


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  • Registered Users Posts: 6 Patra


    God if u must know the extra money I earn is gratituities as I charge small price for good workmanship and I don't put through that but sometimes end up using it for materials , my acc told me I don't have to put it through as its not earned from the price I charge but from people's bloody generosity so to anyone who thinks I'm a tax cheater....do waiters have to pay tax on their tips??? I don't think so! I thought me telling the bank that its possible for me to earn more that I'd have better chance of getting mortgage , god I'm being made look like a criminal here


  • Registered Users Posts: 4,502 ✭✭✭chris85


    Put it anyway you want, you run a business and are under declaring your earnings. You may consider you are doing it by the book but the Revenue would not, also doesnt matter what your competitors are doing as two wrongs dont make a right.

    I hope it catches up with you to be honest. There are many "by the book" businesses suffering as people who are under declaring earnings can undercut their prices by cheating the system.

    And the bank will only look on your book earnings for mortgage, it wont be helpful that you are self employed as perhaps bigger risk than permanent employee in good company.


  • Registered Users Posts: 1,813 ✭✭✭peteb2


    Patra wrote: »
    God if u must know the extra money I earn is gratituities as I charge small price for good workmanship and I don't put through that but sometimes end up using it for materials , my acc told me I don't have to put it through as its not earned from the price I charge but from people's bloody generosity so to anyone who thinks I'm a tax cheater....do waiters have to pay tax on their tips??? I don't think so! I thought me telling the bank that its possible for me to earn more that I'd have better chance of getting mortgage , god I'm being made look like a criminal here

    No one is making you look like anything. You've made yourself look that way. And there is no looking - you are! You've come on and said that you basically underpay your tax!


  • Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    This whole thread fails on so many levels.

    OP: a) Don't ask us how to diddle your application and b) consider changing accountant.


This discussion has been closed.
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