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Although many people in the UK might be in the dark over their official income category, it's crucial you know if you are going to be sure to get hold of any credit in the future.

A lot of people might think they are 'self employed' – they work a job, like the construction industry, where they think they can be deemed as someone who is employed by themselves. This may also goes for freelancers, people whose income is based on commission and even people who have a second job.

You need to get some professional advice if you are to be deemed as a 'self certifying' borrower. This means you cannot prove your income, you cannot show a regular set wage but you are earning enough money to get hold of credit like a mortgage.

If you get it wrong then you could be in serious trouble. The Government recently outlined proposals to crack down on the problem of false self-employment in the construction industry. Many construction workers say they are self employed, and may have tried to get a mortgage as a self employed person, but without the right tax category this might be breaking the law.

If you think you might be self employed, or at least a person who would be deemed to be self certified, the you need to talk to a financial professional. Self certifying income is not an easy process since the credit crunch, and many people who cannot prove their income will get turned down for finance. So get your affairs in order and find out definitively whether you are a self cert individual with the help of a self cert mortgage expert.

SOURCE: HMRC, 02/08/09

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