How to Hub

7 ways you can get a better outcome for your self-employed clients

09 Apr 2024

As we come to the end of another tax year many self-employed people will be taking stock of their finances, possibly in a position where their last years trading was extremely profitable or for many reasons, profits may have been lower than expected.

Self Employ

2023/2024 may have been the first year trading for some after recently going self-employed, or they may have joined a new business as a self employed partner part way though the tax year.

Purchasing a new property or remortgaging to complete that extension or fund that once in a lifetime holiday may seem impossible at this point. but with Foundation’s flexible approach to self-employed income, we understand that a drop in profits one year doesn’t always show the full picture and having only one year’s accounts doesn’t necessarily mean you are brand new to the business or that industry.

At FHL we assess your clients’ situation on a case by case basis and can often help in the following situations:

  • We can use 2022/2023 figures up until the end of January 2025 (assuming 2023/2024 have yet to be submitted)
  • We can consider the latest year’s accounts with a good projection
  • We can accept only one years’ accounts where your client was previously employed in the same industry
  • We can lend where your client has been employed by an established firm and has recently become a partner
  • If a successful business has had a drop in profits but there is rational as to why and a projection we can consider the previous years’ income
  • We can use net profit and salary OR salary and dividends whichever works best for your client
  • If your client plans on continuing to run their business past state retirement age and it is non-manual work we can take their self-employed income to age 75

Do you have a self-employed case you’d like help with? Please call our iBDMs on 0344 770 8032 today.

You can also read more about best practice when keying a self employed application here

How to… Maximise borrowing using latest year’s accounts only


Register with us