Corroborating Income Flashcards
1
Q
Self Employed:
A
Set of accounts for each of the last 3 years:
- Balance sheet
- Profit and Loss account
- Cash flow statement
- Notes to explain any unusual items
Self-employed with turnover
2
Q
Business Borrowing
A
Some partners and directors look to raise business capital by securing a business loan against their residential property.
If borrowing is for business - and property meets the definition for a RMC - loan will fall under MCOB rules unless applied on an execution-only basis.
3
Q
Company Directors
A
Need to verify income of a company director and if they own 20-25% of the company they are likely to be treated as self-employed
Typical proof of income:
- Accountant certificate
- 2-3 years company accounts
- most recent year-end
- Self-assessment income tax calculation covering 24months
- Latest payslip and 3 months bank statements showing salary credits
