Pepper Money have launched a significant improvement to our self-employed policy. We have introduced the ability to use net-Profit retained within the business as part of our affordability calculation.
Under the new criteria, we will allow brokers to use the net profit within our affordability calculation, where earned during the most recent tax year for majority shareholders in a business.
We will use the net profit in line with the customers share of the business. So, for example, a customer having 60% share of the business, we would allow 60% of the net profit. Where joint applicants have a shareholding of 100%, we will allow 100% of the net profit to be taken.
Why:
This improvement to our self-employed criteria is designed to meet the needs of those customers who chose to retain profit within a business to use towards a future tax bill or capital investment. This will enable them to use the full earnings they are entitled to for affordability and LTI purposes.
If you have any questions, please do reach out. If you could share internally with any publications/newsletter… we would really appreciate the support.
Brad Rhodes
National Key Account Manager
07904 685437
brad.rhodes@pepper.money