1. Inside IR35 Doesn’t Mean "Employee" for Mortgages

   • While HMRC views you as an employee for tax, many specialist lenders still classify you as a contractor.

   • Your income can still be assessed based on day rates or contract value, not just PAYE salary.

2. Umbrella Company Payments Count as Income

   • If you’re paid through an umbrella company, lenders will accept:
     ✓ Payslips (showing gross income)
     ✓ Assignment details (proof of contract continuity)

   • Some lenders even apply a day-rate calculation (e.g., £500/day × 220 days = £110k annual income).

3. Limited Company Directors Face Extra Scrutiny

   • If you’re outside IR35, lenders may assess:
     ✓ Dividends + salary (if paid this way)
     ✓ Retained profits (some lenders include them)

   • If you’re inside IR35, focus on contract renewals and future assignments.

Critical Documents for IR35 Contractors

To strengthen your application, gather:

• IR35 Determination Statement (proves your status)

• Umbrella Company Payslips (last 3-6 months)

• Current Contract + Renewal Evidence (shows income stability)

• Bank Statements (matching payslip deposits)

How Contractor Mortgage Solutions Helps

We work with lenders who understand IR35 complexities and can:
✅ Match you with IR35-friendly lenders (including those who accept umbrella income)
✅ Optimize your application (e.g., using day-rate multipliers)
✅ Challenge unfair rejections (we’ve overturned declined cases before)

Pro Tip: If switching from outside to inside IR35, apply for mortgages before the change—it simplifies income proof.