Subbie Tip #7 – Do My Payslips Give The Lender Everything They Need?
There are many lenders that will base their affordability calculation on your Gross CIS income but only if they can find all information they need on your CIS payslips. Note the use of the plural here; that’s because it is very rare for lenders to accept an annual summary statement; instead they will want to see either weekly, fortnightly or monthly payslips along with supporting bank statements they can cross reference the details with.
I’ve seen many examples where the CIS payslips provided lack certain elements of the full information needed to evidence income. It’s also quite common, particularly for smaller building contractors, to produce payslips retrospectively when they’re requested. Where the request relates to a mortgage application this can be quite helpful because it gives you the opportunity to discuss what’s needed to make sure the slips will provide the level of evidence your lender needs which is:
- Your name (as the subcontractor)
- The name of the contracting firm
- Pay Date
- Gross amount paid
- 20% CIS tax deduction
- Net amount payable
- UTR (Unique Tax Reference)
- NI (National Insurance) Number
Here’s an example of a good CIS payslip; one that provides all the required detail (insert image for blog or hold up copy on video) and as you can see it contains all the elements we’ve just talked about.
I hope this has been useful and please share the information with other Subbies you know that are house hunting right now! For more advice on any aspect of mortgaging a house purchase give me a call on 08000 306705 or drop me an email to david@cismortgage.co.uk.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE