Subbie Tip #8 – How Tax Deductions Affect Your Mortgage
When looking for a CIS mortgage, it’s important to review tax deductions, and the affect the tax rate you pay may have on your mortgage application.
This is particularly important if you’re looking to take advantage of the opportunity to base your application on your CIS gross income to boost your mortgage affordability. The lenders I work with that will accept Gross CIS pay will only do so if you are fully registered through the CIS and, therefore, only paying 20% tax deducted at source by your contractor.
Simply being paid through the CIS scheme isn’t enough; it is possible that a construction firm may pay you through the CIS but with a 30% tax deduction if you don’t have a Subcontractor CIS registration number. If you find yourself in this position, you may be better off waiting until your CIS registration has arrived before progressing with an application for a mortgage big enough to meet your needs.
I’m always happy to review your CIS paperwork and discuss your mortgage options; give me a call on 08000 306705 or send me an email to: david@cismortgage.co.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE