Many business owners still believe that lenders will only accept the income shown on their tax return, even when their company performance is far stronger. This misunderstanding remains one of the biggest obstacles to directors securing the borrowing they should rightly qualify for. In reality, the 2025 lending landscape offers far more flexibility—particularly through lenders that accept accountant-certified income or adjusted profit calculations.
For directors who deliberately keep drawings low for tax efficiency, or for businesses experiencing rapid year-on-year growth, using certified income can make a dramatic difference. Instead of relying on outdated or artificially suppressed income figures, lenders can base the assessment on the company’s real financial performance. This approach is increasingly important for entrepreneurs operating multiple businesses, SPVs, or companies with retained earnings—a trend explored in the live guide
Directors’ Remuneration & Retained Profits: Smarter Borrowing for Ltd Company Owners in 2025.
Accountant-certified income bridges the gap between what a director declares for tax purposes and what they actually earn. This blog explains how it works, why more lenders accept it in 2025, and how business owners can use it strategically to secure significantly higher lending.
Why Accountant-Certified Income Matters in 2025
Many borrowing limitations faced by business owners stem not from their financial reality but from the constraints of traditional underwriting. A tax return only reflects income physically extracted from the business, not the company’s actual profitability or the director’s true earning potential. This is particularly problematic for companies that reinvest heavily, retain earnings, or have strong underlying performance that is not fully reflected in drawings.
Accountant-certified income allows directors to present a fairer, more accurate financial picture to the lender. Instead of relying exclusively on SA302s, certain lenders accept a professional accountant’s adjusted income report that reflects:
- full-year profit
- retained earnings
- director loan account positions
- expected future drawings based on sustainable profitability
- adjustments for non-cash expenses and one-off costs
This leads to a more commercially realistic affordability assessment—especially relevant for growth-stage businesses or companies with a strong trajectory.
As seen across the market and highlighted in
Mortgages for Self-Employed Borrowers, modern underwriting is increasingly designed to align with how businesses actually operate, rather than how they appear on a tax return.
How Lenders Assess Accountant-Certified Income
In 2025, a growing number of specialist lenders and private banks accept accountant-certified income as part of a detailed affordability review. Their focus is not on the amount a director chose to draw but on the financial evidence demonstrating what they could draw without weakening the business.
The assessment typically begins with a full review of the company’s performance. Lenders examine net profit, profit before tax, retained earnings, liquidity, cash flow resilience, and future trading prospects. Once stability and profitability are established, the accountant prepares a formal certification of income. This document outlines the real financial position of the business and confirms the level of income the director could sustainably draw.
For example, if a director took a £12,570 salary and £20,000 dividends but the company generated £200,000 net profit, the accountant may certify an income level far higher than drawings suggest. Lenders treat this certification as a credible, validated assessment, enabling significantly stronger borrowing outcomes.
This approach is particularly common among lenders who specialise in complex income, private banking, or business-owner mortgages—where bespoke underwriting is the norm.
Why Adjusted Profit Calculations Increase Borrowing Power
Adjusted profit calculations are central to accountant-certified income assessments. Many companies incur non-cash expenses or one-off costs that artificially reduce profit on paper but do not reflect the true operational earnings. Adjusted profit addresses this by reversing out elements that distort the core financial picture.
Depreciation, amortisation, and one-off losses are often added back, as are non-recurring expenses that do not impact sustainable affordability. Adjustments may also include discretionary spending, director benefits, or unusual financial events that occurred outside normal trading activity.
This refined profit calculation provides a more accurate representation of the business’s ongoing capacity to support income. When used in mortgage underwriting, adjusted profit can increase assessable income dramatically, particularly for capital-intensive businesses or those undergoing expansion.
In a competitive lending market, this offers directors an opportunity to present their financial strength clearly—without being disadvantaged by tax-efficient accounting decisions.
Where Accountant-Certified Income Makes the Biggest Difference
Accountant-certified income has become a powerful tool for a wide range of business owners in 2025. It is particularly valuable in scenarios where declared income diverges from company performance.
Directors of businesses experiencing rapid growth benefit significantly, as high-street lenders often insist on averaging two years of income. This penalises companies whose profit has increased sharply. With certified income, lenders can base affordability on the latest year alone, recognising the current state of the business rather than outdated figures.
It is also highly effective for multi-entity business owners. Directors with several companies often extract income unevenly, leaving high-street lenders unsure how to assess total affordability. A consolidated, accountant-certified statement solves this by presenting a clear view of group-level profitability.
For companies that reinvest profit or accumulate retained earnings, certified income ensures that this strength is correctly reflected. Many lenders will treat retained earnings as available income capacity when supported by professional certification.
The same applies to directors’ loan accounts—where the business owes money to the director. These balances can be drawn tax-free, yet high-street lenders often ignore them. Certified income brings these assets into the affordability assessment.
Common Misunderstandings Around Certified Income
Many business owners assume that if income is not shown on the tax return, it cannot be used for affordability.
This is no longer correct. Lenders who understand entrepreneurial structures recognise that tax-efficient drawings do not reflect a director’s true financial means.
Some also believe that certified income is only accepted by ultra-niche lenders. In reality, many mainstream specialist lenders now offer this route, and it is increasingly common among private banks as well.
Another misconception is that certified income is only for large companies. In practice, it is equally suitable for small or mid-sized businesses, provided the company has stable profitability and clear financial evidence to support the certification.
Ultimately, the challenge is not eligibility—it is awareness. Business owners who rely solely on high-street lenders often miss opportunities simply because they are not aware of more flexible options.
Hypothetical Scenario
A director draws a modest £32,000 per year for tax efficiency, but the business has generated £180,000 profit for the last two years and holds £240,000 in retained earnings. A high-street lender assesses affordability using the £32,000 drawn income, drastically capping borrowing. A specialist lender reviews accountant-certified income confirming the director could sustainably draw £120,000. The resulting mortgage offer is materially higher and aligned with the company’s true performance.
This is a common scenario across modern director-owned companies.
Outlook for 2025 and Beyond
The adoption of accountant-certified income reflects a broader industry shift toward more sophisticated underwriting. As the UK lending market continues to evolve, more lenders are adopting commercial logic instead of rigid personal-income calculations. For business owners, this represents a major opportunity to access higher and more accurate borrowing levels—provided they work with lenders who understand commercial finance.
In 2025 and beyond, certified income will become an essential tool for directors seeking mortgages that reflect their real financial strength. Those who present their income proactively and strategically will continue to secure the most favourable outcomes.
How Willow Private Finance Can Help
Willow Private Finance specialises in structuring mortgage applications for business owners, directors, entrepreneurs, and clients with complex or multi-entity income. Our whole-of-market access ensures we work exclusively with lenders who understand accountant-certified income, adjusted profit calculations, group structures, retained earnings, and director-led businesses.
Whether borrowing personally or through an SPV, Willow positions your financials with lenders who can assess the real performance of your business—not just the drawings shown on your tax return.
Frequently Asked Questions
Q1: Do all lenders accept accountant-certified income?
No. High-street lenders generally do not, but many specialist lenders and private banks do.
Q2: Can certified income replace my tax return income?
Yes. Some lenders can use the certified figure instead of your drawings where it accurately reflects business performance.
Q3: Can adjusted profit help me borrow more?
Yes. Adjusting for non-cash or one-off expenses can significantly increase assessable income.
Q4: Is certified income suitable for small businesses?
Absolutely. It works for companies of all sizes provided there is stable profit and clear financial evidence.
Q5: Do lenders accept retained earnings as income?
Some do—particularly when supported by accountant certification.
Q6: Does this help fast-growing businesses?
Yes. Lenders can use the most recent year rather than averaging, which benefits growing companies.
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