Mortgage Advice - Self Employed

The_Fitz

Hi folks - I asked this in the mortgage thread but it got buried. Just wondering if anyone has knowledge of the below scenario when you have set up your own company? I know some banks (AIB) ask for 3 years of audited account but some other look for 2 (UB).

Scenario:

Company incorporated July 2020.
First years final accounts will be ready say Feb 2021, second years account ready Feb 2022.

Ulster Bank's requirements for self employed (https://digital.ulsterbank.ie/person...cuments.html#):

2 years audited accounts certified by an accountant and signed by you
Self certified accounts if no accountant with revenue balancing statement
6 months business bank statements on all business accounts held
Revenue forms – Form 11 & Chapter 4 for last 2 years
Tax clearance cert or letter from accountant confirming tax affairs up to date

The section that says Revenue forms - Form 11 & Chapter 4 for last 2 years. The person who set up the company, and is a director pays their tax via PAYE each month. Does this director need to fill out a Form 11, even if they are paying their tax monthly, similar to an employed person (rather than self employed)?

Revenue states that you don't need to register for Income tax self assessment if you only receive PAYE income here

However, as a director they will have to to file a self assesment always? Am I reading that right? Here

Also, does anyone know if the final accounts which will take into account the date the company started (July 2020) until year end (Dec 2020) will be accepted as a full year?

Thanks for the advice

drunkmonkey

I've done it I think with 2yrs audited accountants with AIB, it's about 8yrs ago so not fresh in my head. It was a joint application though and the other half looked a lot healthier on paper.

The_Fitz

drunkmonkey wrote: »

I've done it I think with 2yrs audited accountants with AIB, it's about 8yrs ago so not fresh in my head. It was a joint application though and the other half looked a lot healthier on paper.

Was it as a director of a limited company? Just trying to work out when the earliest is that the salary can be taken into consideration.

You'll need a minimum of two full years wages out of the company. They want a reasonable evidence to suggest the company is sound and your income is likely to continue.


Company incorporated July 2020.
First years final accounts will be ready say Feb 2021, second years account ready Feb 2022.

Mid 2022 might suffice, two years accounts and you'll have 24 months wages out of the company.

drunkmonkey

The_Fitz wrote: »

Was it as a director of a limited company? Just trying to work out when the earliest is that the salary can be taken into consideration.

I wasn't drawing a salary from the company, had a st business which was paying me. I was the MD.
Is it a joint application, sounding like you may need it.

The_Fitz

Augeo wrote: »

You'll need a minimum of two full years wages out of the company. They want a reasonable evidence to suggest the company is sound and your income is likely to continue.


Company incorporated July 2020.
First years final accounts will be ready say Feb 2021, second years account ready Feb 2022.

Mid 2022 might suffice, two years accounts and you'll have 24 months wages out of the company.

Makes perfect sense and hadn't taken into account the 24 months wages!