Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Buying whilst a contractor

Options
  • 22-03-2020 9:47am
    #1
    Dorakman
    Banned (with Prison Access) Posts: 83 ✭✭


    Lenders have said that they need one years audited accounts. What exactly does this entail? (I know very little about accounting) In this scenario, I’ve been a contractor with the public service for 18 months, through an umbrella company which take care of all of my tax and accounts etc. Are these accounts considered audited?


Comments

  • Options
    #2
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Ask whoever runs your umbrella company if the accounts have been audited or get a copy of the accounts from the CRO website and read for yourself (small charge).


  • Options
    #3
    quietsailor
    Registered Users Posts: 1,428 ✭✭✭quietsailor


    First off - are you;
    1. A PAYE contractor ie you get a payslip where your taxes, PRSI, USC are all deducted already
    2. A self-employed contractor - you have to submit VAT & PAYE/PRSI/USC forms to the revenue OR the umbrella company submits these for you charging you a fee.
    "through an umbrella company which take care of all of my tax and accounts etc." could mean either
    If you're the first you might be able to get the umbrella company to sign a salary cert - we've had one lad here at work get the cert and another a year later have to fight to get the cert - depends on the finance/HR person you meet on the day.

    If the second - get on to your accountant/the umbrella companies accountant


  • Options
    #4
    Dorakman
    Banned (with Prison Access) Posts: 83 ✭✭Dorakman


    quietsailor wrote: »
    First off - are you;
    1. A PAYE contractor ie you get a payslip where your taxes, PRSI, USC are all deducted already
    2. A self-employed contractor - you have to submit VAT & PAYE/PRSI/USC forms to the revenue OR the umbrella company submits these for you charging you a fee.
    "through an umbrella company which take care of all of my tax and accounts etc." could mean either
    If you're the first you might be able to get the umbrella company to sign a salary cert - we've had one lad here at work get the cert and another a year later have to fight to get the cert - depends on the finance/HR person you meet on the day.

    If the second - get on to your accountant/the umbrella companies accountant

    Scenario 1, does that count as generic PAYE for lenders, or is it still contracting?


  • Options
    #5
    GalwayBmw
    Registered Users Posts: 90 ✭✭GalwayBmw


    Dorakman wrote: »
    Lenders have said that they need one years audited accounts. What exactly does this entail? (I know very little about accounting) In this scenario, I’ve been a contractor with the public service for 18 months, through an umbrella company which take care of all of my tax and accounts etc. Are these accounts considered audited?

    If your employment contract is with an umbrella you aren't a contractor strictly speaking. Don't redflag yourself just call them the name of your umbrella and see what happens.


  • Options
    #6
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,479 Mod ✭✭✭✭johnnyskeleton


    Dorakman wrote: »
    Lenders have said that they need one years audited accounts. What exactly does this entail? (I know very little about accounting) In this scenario, I’ve been a contractor with the public service for 18 months, through an umbrella company which take care of all of my tax and accounts etc. Are these accounts considered audited?

    Which lenders have said this? Most lenders want at least 2, sometimes 3 years' worth of accounts for self employed people. And they want accountant certified accounts, not audited accounts.


  • Advertisement
  • Options
    #7
    kevinc565
    Registered Users Posts: 99 ✭✭kevinc565


    GalwayBmw wrote: »
    If your employment contract is with an umbrella you aren't a contractor strictly speaking. Don't redflag yourself just call them the name of your umbrella and see what happens.

    Exactly. You are an employee of the umbrella company.


  • Options
    #8
    un5byh7sqpd2x0
    Closed Accounts Posts: 1,862 ✭✭✭un5byh7sqpd2x0


    As others have said, your first mistake was calling yourself a contractor.


  • Options
    #9
    quietsailor
    Registered Users Posts: 1,428 ✭✭✭quietsailor


    Lenders have said that they need one years audited accounts

    Balls, I missed this bit. You've flagged yourself as a contractor to the lenders. How far along the lending process are you - are you entered into their records as "Dorakman, at address XXX" is looking for a loan or was it just a casual chat in the bank when they asked you for the audited aco*****?

    The reason I ask is they may now get suspicious if you turn up with a salary cert from the umbrella company.

    The second problem you have is dealing with the HR/finance section in the umbrella company. Strictly speaking they should enter you as a PAYE Contractor on the salary cert. Hopefully they won't and there will be no mention of contractor anywhere from now on.


Advertisement