WARNING: Starting a Business in the UK? BE AWARE OF THIS!
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- เผยแพร่เมื่อ 22 พ.ค. 2022
- If you a starting a new business in the UK, either as a Ltd company or sole trader, then you need to be aware of this before you quit your job!
People are often so focused on how to start a business that they don't realise the potential impact it can have on their ability to get credit.
Becoming self-employed makes it a lot more difficult to get a mortgage or remortgage as lenders treat self-employed borrowers differently than employees.
Employees are often able to get a mortgage with only 3 months of payslips, whereas self-employed applicants often need to provide 2 to 3 years of earnings history.
Self employed mortgages are available in the UK but the requirements are a lot stricter than they used to be before the global financial crisis.
It doesn't matter if you are a sole trader or a director of a Ltd company, the mortgage provider will still class you as self employed.
Have you had any issues getting a mortgage as a self employed applicant? Let me know in the comments below!
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Thank you , very well explained in simple sentences and no ad is a bonus. Please keep up the good work.
Thankyou for this
Very helpful and look forward to seeing more of these starting videos
Thanks for the warning!
Thank you. I feel Small Business in the UK is greatly discriminated against too. People with money can pay and overtake your business in the search engines, even if you are the original founder of your business name. The £300 trade mark was a total waste of money. It does not protect you.
But where there is a will there is a way. I refuse to let them win. 😀👍
This was very valuable. Thank you so much
It is so idiotic as one could be fired and loose his job just after obtaining a mortgage. As self employed you will always make sure you have business to keep you going.
I agree. It's just another way for the people in power to destroy small business like they are doing with the poor Farmers.
Great video Darren 👍
Cool Video, Thanks for Sharing !🙂
Good content 👍
Yes it is very true, we bought an appartement and they have been very picky, even though we were very comfortable to pay the morgatage and more than 10 years in the same company! Not sure employed people have much more security on they salary! Anyhow that is what is it.
Darren,
You need to play the lender's game. You're a company director (I am too), and also self employed (me too). The answer is simple, tell the lender that you're employed - you are by your company. Before application increase your PAYE income enough to support the figures for at least 3 months. Once the lender is happy and mortgage issued, decrease your salary accordingly as you wish. Job done. It may cost you a bit extra in tax and NI for a few months but you can reduce the PAYE to zero for a few months after to correct this. simples? You'd be doing nothing wrong. The salary and figures are legit at the timeframe they are asking about.
if you are the director of a company they want 3 years accounts, they're not stupid
Was thinking the same but if the ask for three years worth it’s not going to work 😩
@@JG-fg1ye Director of a company is still an employee though, right? So as far as I am aware, as long as you have pay slips, you will be fine with the method that Eddie mentioned.
Yes Banks arent stupid, but they still want your money. Im sure plenty go down this route, I mean, during the video the same thing occurred to me too.
@@navsingh9406 No a director is an office holder, they're legally different, they are only classified as employees when a employment contract is in place or salary but regardless If you are a director of that company which pays you or have shares then you would typically need to provide 3 years accounts for most financial borrowing personal or company.
@@RJWLane self employed people have the same problem, its not fair really but the banks do have to protect themselves after 2008.
This is true. My husband is self employed it's a pain for mortgage stuff. I can at our age not worry about his returns in the calculation. So if you are with someone who is employed it's easier to just score that if you are like us and need a small mortgage
To just score???
I feel for you. So unfair. We live in a system where the Academic British Elites control the whole playing field in Work and Education.
I hope to beat them at their own game, but support the little people when I eventually win.
So if I have to remortgage in 4 years, would you recommend again open a retain, with owne funds? As company not free lancer then as employe of the company.
What if I'm starting a clothing brand business In the UK? Wouldn't it cost too much money, if say customers decided to return goods to the virtual business address/office or packages were sent to that virtual address?
I know that there are mail forwarding service for HMRC letters etc to be scanned or forwarded on but I'm unsure and stuck in regards to what address to put down for the clothing brand I want to start. I'd appreciate your thoughts on this please
The most commonly known loopholes in being self employed is hiring yourself as a paye employee or don't go anywhere near a mainstream lender, there are loads of brokers that can help you get credit even if you own your own business
The spam on this channel is crazy....
How about if you was an employee in your own LTD company ?
Any businessman with any sense wouldn't need a mortgage anyway.
Owning a business in the UK itself is absurd, 25% corporate tax incoming AND then 45% personal tax? PLUS SOME.
It's all designed to keep the poor 'where they belong'- in service to the rich. Someone has to do all the jobs that keep the world running and it sure as hell won't be rich people cleaning out sewage pipes or serving coffee.
random question pal. do you need to register your business before you copyright your brand name and logo? or does it not matter?
Doesn't matter mate.
I is asy and lean xplanation Thanks
Not very Business video! It's more towards Self-employed and Employees, instead about Limited Companies!!!
Oh
More.
Wow the spam in comments though 🤦♂️
It's like it on most every video from every influencer. Desperation. I feel bad for the naïve among us
@@reeferbeleafer9912 then help them by reporting the spammers….
IM CLAUSTROPHOBIC DARREN 😭
misleading title, and takes ages to get to the point
Hello Darren! We are a company that we would like to collaborate with you. Is there any way to contact you? Thanks!
Thanks for the video. Do you have an email i contact you on ? Carl