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This article is a useful, practical guide for self employed individuals who need to provide tax calculations and tax year overviews for their mortgage application.
An SA302 is a statement available from HM Revenue and Customs (HMRC) that provides evidence of your earnings for the previous four years, once you have submitted your Self Assessment tax return.
Your tax calculation (SA302) shows your total taxable income and any allowances and relief that you have. It details the total amount you owe for the tax year and it explains how HMRC has calculated the amount of tax you owe.
It does not include any ‘payments on account’ that you have already paid towards your next tax bill, payments you have made into a ‘Budget Payment Plan’, or any other outstanding amounts like unpaid tax or penalties.
If you pay your income tax via Self Assessment, your potential mortgage lender will need to see evidence of your earnings as part of your mortgage application. They will request an SA302 for that purpose, along with a tax year overview.
This is an additional document that verifies the information in your SA302 is correct. It is produced by HM Revenue and Customs (HMRC) after you have submitted your Self Assessment tax return. It spells out how much tax is owed to HMRC for a particular tax year, or any available amount that is due to be refunded to you.
You will get your calculation after you have filed your Self Assessment tax return or if the amount you owe changes. If you filed your tax return online, you will be able to view your tax calculation before you submit your return.
However, please note that you will not be able to view and print your tax calculation for up to 72 hours after you submit your return so make sure you save a copy of the data before you submit it, in case you need it during that time.
If you filed a paper return, the HMRC will post your calculation to you.
You can print your tax calculation and tax year overview if you do your Self Assessment tax return using either the HMRC’s online services or commercial software.
Do check first, though, that the mortgage lender will accept documents if you are producing them via commercial software rather than use HMRC’s.
If you or your accountant use commercial software to prepare your return, you will need to use that software to print out your tax calculation. It may be referred to in the software by something like ‘tax computation’.
Whether you use commercial software or not, you can still print a tax year overview from your HMRC online account.
Log in to your HMRC online account here and Select ‘Self Assessment’ if you are not automatically routed there.
Then, follow the link ‘View Self Assessment return for tax year 20xx to 20xx’, selecting the year you want from the dropdown box. The tax year runs from 6th April to 5th April.
After you click ‘Go’, you will be able to click on ‘Print your tax year overview’ then ‘Save as PDF’ in the folder of your choice.
Our experienced, qualified team of financial advisers can help you to navigate the system and make sure that you are providing all the right paperwork to help your mortgage application process to run smoothly and to give you the best chance of having your mortgage application approved.
You can email us, fill out the contact form on our website or call us on 02380 668407. We look forward to hearing from you.
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