One of the most common push backs we hear from people who are considering contracting is whether it could affect an application for a mortgage. It seems that there is a perception that the only way to get a mortgage is by being a permanent employee, which is not the case.

The rules for Professional Contractors and Permanent Employees are very similar when applying for a mortgage.

When we talk to contractors on their initial call with our Solutions Team we would always try to gauge if and when they plan to apply for a mortgage and recommend which of our Contractor Tax Solutions would be most suitable for their time frame.

So for example, if somebody is new to contracting and wants to apply for a mortgage within 6 months we would recommend our Umbrella PAYE option as they will not require an Income tax return for the application.

If they plan to apply after a year then we would advise them they can opt to be a Director as they would have a completed income tax return by the time they plan to apply! We are more than happy to chat with any potential contractor who might be interested or have questions around how contracting could be the right fit for them – just get in touch with us on