Our customer wished to borrow £234,000 as a second charge against his main residence in order to settle a large income tax bill.
The borrower had fallen foul of controversial retrospective tax legislation known as ‘Loan Charge’. HMRC have applied Loan Charge to around 50,000 self-employed people in the UK who previously used Umbrella Companies to receive their self-employed income. The loan will form part of the payment due to HMRC because the Umbrella Company failed to correctly calculate the full extent of the borrower’s tax and NI liabilities due over the previous 7 years. The borrower was going to settle the rest of his outstanding tax bill from savings before the funds from UTB were released.
Our customer ceased using the Umbrella Company from 2019 when he set up his own Limited Company and was able to show company accounts and income paid through the Limited Company from then.
Although this was an unusual and complex case, close collaboration between the UTB’s Underwriter, Roisin Murray, and the introducing broker ensured a swift referral, submission and full underwrite with application to offer achieved in just 8 working days.