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Where Taxpayers and Advisers Meet

LTD to Limited Liability Partnership, mortgage implications for members!

craig1987
Posts: 2
Joined: Thu Jan 30, 2020 2:51 pm

LTD to Limited Liability Partnership, mortgage implications for members!

Postby craig1987 » Thu Jan 30, 2020 3:51 pm

Good afternoon,

Hopefully i am in the right pace and may be able to get some form of clarification on this!

Background.

I started work for a LTD company who specialise in home improvements on an employed basis through PAYE back in October 2019, since then the company has encountered some financial difficulty resulting in £120,000 of debt and quite a few of us not been paid since November to date.

Around 3 weeks ago the company has taken on investors who are working towards making the company turn a profit and become successful, they have re-structured the company but not invested any money as they believe that we can work our way out of the debt through better management which is great if possible.

I had a meeting with the new investors last week who told me that in order to make the best of the company they will need to change the company from LTD to a LLP (limited liability partnership) of which myself amongst others would be a member, i will still take a salary paid on a monthly basis, but, i will need to become self employed to do so.

Questions.

Does anyone know if being self employed as part of an LLP differs in anyway from being normally self employed in regards to acquiring a mortgage? I know from past experience that usually as somebody who self employed you would need around two years tax returns.

Any other information in regards to how been self employed under an LLP could effect me would also be very much appreciated.

If you could explain this in as simple terms as possible that would also be great :lol:

Thanks very much.

Craig.

jerome.lane
Posts: 192
Joined: Mon Aug 12, 2019 8:41 am
Location: Sandhurst, Berkshire
Contact:

Re: LTD to Limited Liability Partnership, mortgage implications for members!

Postby jerome.lane » Tue May 05, 2020 3:17 pm

If you're employed by and/or a member of a failing LLP, you are even less likely to be able to obtain finance. Other than that, the likelihood is that you'll need a couple of years of tax summaries to support your income although there are lenders out there with more flexible lending criteria (at a premium).

If you are not getting paid by your employer, then you might want to make them aware of the national minimum wage. Do you really believe this can be rescued and do you want the risk?

I just noticed that this post is from January so I guess you probably already have your answer right now!
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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