Travel and subsistence counted as income

[daveccork]

Hi all,

I'm Self employed (company director).

Reasonable salary and regular recurring travel and subsistence expenses paid monthly (also tax advantageous). Obviously both are at my discretion. I keep the salary reasonably low and retain funds in company.

I am in process of mortgage application & it's looking uncertain as to whether they will include expenses when looking at my income. Any experiences / thoughts on this?

Applying with PTSB.

Daveccork

 

[Luternau]

Actually, expenses are not income in the truest sense-so the bank would be right to exclude them. Is there not a big exercise with Revenue and self employed/small business over the claiming of travel expenses (from home to place of work etc) This may lead any bank to be concerned that future expenses payments may not be be as high.

 

[T McGibney]

Hi all,

I'm Self employed (company director).

Reasonable salary and regular recurring travel and subsistence expenses paid monthly (also tax advantageous). Obviously both are at my discretion. I keep the salary reasonably low and retain funds in company.

I am in process of mortgage application & it's looking uncertain as to whether they will include expenses when looking at my income. Any experiences / thoughts on this?

Applying with PTSB.

Daveccork

If Revenue discover at any stage that you have told the bank that your expense receipts are really disguised income, they will tear you asunder.

 

[daveccork]

If Revenue discover at any stage that you have told the bank that your expense receipts are really disguised income, they will tear you asunder.

Well I appreciate the tip but nowhere have I said that nor would I say that. The reality is that I do business travel, I claim mileage & subsistence in line with civil service mileage rates & in relation to genuine business trips. The fact that this is of financial benefit to me is irrelevant. I.e. Rate per km is x, cost is y & car is paid off so no car loan.

I was audited earlier this year and no issues arose - the final audit letter issued which has been given to the bank.

The bank including it as income is a separate issue and I accept why they wouldn't. But i have got different advice from business manager compared to underwriter. Looking for people's actual experiences. If I had been told 8 months ago when I asked, I would have increased my salary. Mgr said ok, underwriter saying no.

 

[denise2007]

Hi all,

I'm Self employed (company director).

Reasonable salary and regular recurring travel and subsistence expenses paid monthly (also tax advantageous). Obviously both are at my discretion. I keep the salary reasonably low and retain funds in company.

I am in process of mortgage application & it's looking uncertain as to whether they will include expenses when looking at my income. Any experiences / thoughts on this?

Applying with PTSB.

Daveccork

No, they won't. The only income you can disclose would be the income disclosed to Revenue in your P60 returns the bank will also want copies of these.

When dealing with a broker he did tell us that when applying for a mortgage some self employed directors would increase their salary payments the year before application for a mortgage.