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Accountant Certificate

JodieRJodieR Experienced MentorRegistered Posts: 1,002
I'm completing a certificate for a sole trader client who's applying for a mortgage. The form asks for Turnover (which I'm fine with), and then asks for Net profit before taxation, but alongside that is a line which reads 'include applicant's drawings or salary as an expense'. ??!! The nature of the business is such that he doesn't own many assets and doesn't have any substantial debtors or creditors so apart from a buffer of £1k or so in the business account, he draws all of his earnings to his personal account, am I really meant to show his net profit as NIL on the form?! to be fair it does ask underneath for the figure for drawings. I've never seen a form like this though, is this normal?

Comments

  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Personally I would fill out the form with the actual net profit.

    I would also enclose our standard reference letter with a copy of the accounts and then can look at them and establish the figures if they need to.
    Regards,

    Burg
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