Here is a situation that catches good people out. You are a director or a senior employee. You own a slice of the company you work for. And you are paid a salary plus dividends, often as part of sensible tax planning your accountant has set up.

But there is a quirk in mortgage underwriting that lands squarely on people in this position.

Youve had a great year and business continues to do well, but then the lender wants to average away your new success

Where your income really sits.

It is spread across the group.

Salary. Dividends. Retained company profit. Profit across several connected companies. All real, and all yours.

Fiscal drag, and the income tax trap that can affect your mortgage