Outside IR35 setup is likely going to give you the highest loan outcome, based on your daily rate. There are no payroll or umbrella company fees for lenders to take into account. As your company and personal tax are handled through the company and your personal returns, the calculation to get to your maximum loan is more straightforward.
Lenders are going to make an assessment of income credits into your business bank account, and where these are lower than the annualised daily rate, this can impact the maximum loan available to you. Therefore, your timings regarding holidays, time off from working and your invoicing patterns need to be considered.
Contractors with their own limited company can still be assessed as a normal self-employed applicant, using company accounts and personal tax returns, although annualising the daily rate generally leads to a higher loan being available.
What we usually need
- The contract, the day rate, and how long is left on it.
- If available, previous contracts and contracting history.
- Evidence of your industry experience, if the company itself is new.
- Latest company bank statements to show contract credits from your agency.
A new company
A new limited company is not an automatic decline, and it is not an automatic yes. The contract has to stand up. A gap between contracts needs an explanation and can be considered.
The calculator on this site uses the day rate on the contract. That figure then runs through the same borrowing and stamp duty illustration as any other income on this site. It is not the lender’s figure.