Clydesdale Bank offers sector-blind contractor lending across structures, with underwriting fluency inherited from a long professional-lending heritage. It is notable for assessing inside-IR35 contractors on evidenced gross contract value — which, as any inside-IR35 contractor knows, is where the borrowing is won or lost. Part of the Virgin Money group, it provides a distinct criteria personality and a useful additional door. This guide covers how it assesses income and where it fits.
Approach is stable; figures are confirmed at application.
Clydesdale assesses qualifying contractors on the day rate or contract value, using the standard annualisation:
Day rate x 5 days x 46 weeks = assessed annual income
Its multiple is applied to that figure rather than to drawings. A £600 day rate assesses at £138,000; at 4.5x that is around £621,000 of indicative borrowing — illustrative, and dependent on your circumstances and Clydesdale’s live criteria.
For inside-IR35 contractors, the single most important question is whether the lender assesses the gross contract value or only the net take-home — a difference that can exceed £200,000 of borrowing on a mid-range day rate. Clydesdale can assess inside-IR35 engagements on evidenced gross contract value, which keeps it firmly on the shortlist for that profile. The gross rate has to be evidenced properly — through the contract, an agency rate confirmation, or an umbrella Key Information Document — and leading the file with that evidence is what secures the gross assessment. Specifics are confirmed at application.
Clydesdale’s policy applies without sector carve-outs, across limited company, umbrella and other structures — useful for contractors in fields some lenders treat cautiously. It built its underwriting fluency lending to professionals, and that experience transfers to reading complex contractor income; qualifying professionals may also be able to access professional products. Because it sits within the Virgin Money group, it is worth comparing across the group’s brands, which we do as part of a whole-of-market search.
Clydesdale suits the contractor — particularly inside IR35 or in a less mainstream sector — who needs gross assessment and a lender without sector restrictions. History expectations are standard rather than day-one, and it prefers clean credit.
Illustrative only, using the standard 5 x 46 method and a typical 4.5x multiple. For inside-IR35 cases, the gross contract value is what should be assessed.
For an inside-IR35 case, the whole game is evidencing the gross rate: lead with the contract, an agency rate confirmation, or an umbrella Key Information Document, so the underwriter assesses the gross contract value rather than the post-deduction take-home shown on a payslip. A payslips-only file invites the net assessment even from a lender capable of doing better.
For any case, Clydesdale’s sector-blind policy means you do not need to worry about your field being excluded — present the contract and let the income speak.
Clydesdale suits the inside-IR35 or umbrella contractor who needs gross assessment, and the contractor in a sector some lenders treat cautiously, given its sector-blind policy. Qualifying professionals may also access professional products.
It suits you less well if you are brand new to contracting with no history, or need day-one lending — a day-one specialist fits that better.
Inside-IR35 engagements can be assessed on evidenced gross contract value, which is decisive for that profile — the difference between gross and net assessment can exceed £200,000 of borrowing. The gross rate must be evidenced; specifics are confirmed at application.
Its policy applies without sector carve-outs, across limited company, umbrella and other structures. Exact terms are confirmed at application.
On the day rate or contract value for qualifying contractors, annualised as rate x 5 x 46, with the multiple applied to that figure rather than drawings.
Both sit within the same group, each with a different criteria personality. We check across the group’s brands for the best fit.
Yes to both, with appropriate income evidence for each structure.
Yes — it built underwriting fluency lending to professionals, which transfers to reading complex contractor income. Qualifying professionals may access professional products.
It can assess inside-IR35 engagements on the evidenced gross contract value, which is decisive — the difference between gross and net assessment can exceed £200,000 of borrowing on a mid-range day rate. The gross rate must be evidenced through the contract, an agency confirmation or an umbrella Key Information Document.
Its policy is broadly sector-blind, applying across fields without the carve-outs some lenders impose — useful if your sector has caused caution elsewhere. Specifics are confirmed at application.
Want to know whether Clydesdale Bank is the right lender for your contract — or which lender is? As a whole-of-market brokerage we compare Clydesdale Bank against the rest of the market and confirm live criteria for your circumstances before you apply.