Partnership or LLP
If you are a member of a Limited Liability Partnership (LLP), or a standard partnership, lenders will treat you as self-employed. We work with lenders that can assess you either from your taxable income on your personal tax return, or based on your share of the partnership profits. If the partnership has a different year end to the tax year, this can be beneficial as this may capture income earned since the last tax return.
Corporate members of an LLP
If you have your own limited company, that is in turn a corporate member of a Limited Liability Partnership (LLP), we can look to assess this based on the profits of the Limited Company
Fixed salary partners
If you aren’t an equity partner, but receive a fixed income, we can look to use this income. If you have not been self employed long enough to have 2 years tax returns, some lenders will be happy to accept proof of your income levels via bank statements and confirmation from your firm. Typically, the managing partner will need to confirm your salary levels in writing. If you have been on a self-employed taxation basis for more than 2 years, you will likely be assessed as a self-employed person.
Recently made a Partner
Once you have been a partner for 2 years, you would be expected to have 2 years accounts or tax returns to show your income as a self-employed person. For recent appointments, less than 2 years ago, some lenders view this as a promotion and can consider using your income as long as your firm can confirm your status and income levels. The length of time you have been with the firm, your prior income levels and overall risk profile of the case are also factors.
