A couple of clients have mentioned applying for a mortgage, albeit too late in the tax year for me to suggest getting their 2017/18 accounts done by a chartered accountant.
Just a query really as I know the rules have changed. Do banks/building societies still require a chartered to draw up the accounts? If not is the tax calculation and a proper set of books (sole trader) sufficient?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I did a remortgage with Santander a few weeks ago and they only asked for the last 3 years figures and no accounts but I did have to put down my qualifications but nothing about being chartered, I also did a mortgage application last year but this was through a FA (not sure who the provider was) and l only had to send in the HMRC tax calcs again no mention about being chartered
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Hi John
Does depend on who the lender is - some are more stupid than the others. SA302 for last 3 years SHOULD suffice, but even some of these get a push back. If they are using a FA its worth asking the question of them before they go any further as applying to a provider randomly and being knocked back for not having the right info can cause issues with credit ratings (and most lenders dont tell you much about the process until you have made the application even when you ask! Mostly as front line staff are far removed from decision makng staff)
Ive just put an email out to an FA acquaintance of mine so might have a bit more of the latest if he comes back to me (usually only a one way street with him trying to get accountancy info from me, so dont hold your breath!)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thanks guys, all very helpful, much appreciated. I was a little worried in case someone applied for a mortgage then told they couldn't accept the figures I provided because I wasn't chartered.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Unless it's saying some banks/BS will accept tax Sa302 and overview and some will want to see accounts, which should be from a CA.
That's what I thought it meant, that if they do ask for accounts then they want them by a Chartered Accountant, but judging by the list that Jay posted most lenders seem ok with just the tax calcs.
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
I am not disputing any of the above but I am still not sure about Accounts being required from Chartered Accountants. A number of issues arise in that a qualified Practice ( not chartered) could have prepared Accounts for clients for many years and would then need to disengage them to another Accountancy practice to prepare the accounts ? Would you need to delay the Mortgage Application until the next tax year if accounts had just been prepared by a non Chartered Accountant??
I recently prepared accounts for the Home Office, and all that was required was quantification's and governing body.
To add to this, more so in the past, we have supported many mortgage applications and having a quick check on the copies of forms we have retained, they either ask for Qualifications, and or Governing body.
I'm not suggesting anything is incorrect but based on our experience, we have never come across this situation. I guess its down to the Building Society in the end. Perhaps its the "smaller" lender who take the biggest risk that may require this ?
To add to this, more so in the past, we have supported many mortgage applications and having a quick check on the copies of forms we have retained, they either ask for Qualifications, and or Governing body.
Hi Jay, although I didn't expressly make it clear, I was referring to the difference between a qualified accountant and a non qualified one, so my use of chartered was in fact incorrect. I have been trading for 10 years in September (milestone yay!!) as qbe.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Thanks but maybe I ought to clarify I didn't really make it my main job until 2012. I fell into this lark totally by accident when a youth worker who had been mentoring my son asked me to do the books for his new taxi venture. I said yes purely as a sideline then in 2010 a friend set up as a builder and asked me to do his payroll and year end stuff. (His wife did the bookkeeping) He passed my details to a cafe in 2011 and a locksmith in early 2012 and at the same time I got recommended by someone else to a fencer and I thought maybe I ought to do this as my main job.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
