Proof of self-employment income for mortgage applications – Form SA302 

If you have applied for a mortgage, you will have encountered the requirement to prove your income for the lender to assess your eligibility based on your ability to pay. For self-employed people, this process has been quite challenging as mortgage lenders require proof of income via a form SA302. Form SA302 is traditionally a paper form issued by HMRC to show an overview of the individual’s tax position in a given financial year. Requesting a form SA302 from HMRC can be a lengthy process with long waiting times before getting through to them on phone and having to wait a further 2 weeks for the paper copy to arrive by post.

On the other hand, many accountants use commercial software to prepare and file self-assessment tax returns – the source of the information in a form SA302. Wouldn’t it be more efficient for self-employed individuals to contact their accountants for this information as opposed to wasting a lot of time waiting for a paper copy in the post from HMRC?

That is exactly what HMRC and the Council of Mortgage Lenders have been working on – to understand the lenders’ requirements and make necessary changes so that lenders will accept commercial software copies of the tax calculation together with a tax overview of the HMRC online account. All the lenders who will accept self-serve copies have also agreed to be added to a list of lenders which has now been published on GOV.UK

This means that if your accountant has filed a Self-assessment return online, they will be able to print a copy of the tax calculation and/or the Tax Year Overview when it suits them rather than calling HMRC and waiting up to 2 weeks to receive a copy.

With these new changes in place, you can apply for your mortgage or additional lending in a quicker time getting you the results you seek faster.

Suggested action for self-employed individuals when applying for funding or a mortgage:

  • Make a budget and plan for how the funds will be utilised to advance your business or support an important personal goal.
  • Check if your Mortgage provider or lender is on this list of providers who accept a SA302 tax calculation. If they are then, simply contact your accountant for your tax calculation to support the funding application. If you haven’t got an accountant or world like help with the funding application, contact us and we will be happy to help.
  • If your lender is not on the list above then you will need to contact HMRC directly to request your SA302 as they can no longer provide this information to accountants with effect from 4 September 2017

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