Self Employed Mortgages - RiteMortgages

Self Employed Mortgages

SA302, Tax Year Overviews and Online Tax Calculations

Trying to get a mortgage when you are self employed can be difficult. Here is what you need for a mortgage. The majority of lenders require up to 3yrs certified chartered accounts. However with the change within the industry there is a now easier option.

The easiest way to describe an SA302 is that they are simply a receipt of what you or your accountant has submitted to the tax man for your income. The document is one page per year and details all income received from employed, self-employed or any other income received (rent or interest from bank accounts). The tax over view documents is a one page document produced per year to show what tax you have paid or still to pay.

How do you get these documents - If you submit your own income you can print these documents off yourself, the SA302 can be printed straightaway or you can alternatively ask for the SA302 to be sent to you via the post.

Alternatively if you have an accountant they can order the SA302 from the tax office or HMRC on your behalf but can take up to 14 days and the tax overview can printed after 72 hours.

New to Lenders

With all the changes taking place more and more lenders are now happy to accept SA302's that have been created by an accountant as long as they are on headed paper but must also be accompanied with the tax over view from the HMRC website.

The Tax Year Overview Explained

The Tax Year Overview shows the amount of tax due to be paid direct to HMRC or any available amount for refund, for a given tax year.

Lenders are looking for verification of the tax paid on your declared income, and are putting the onus on you the client to obtain that information yourself.

The Tax Year Overview will show lenders if any payments have been made by the customer to HMRC towards the amount due. Lenders can use this to support what the Tax Calculation shows.

HMRC commentary on online example of the Tax Year Overview: Customers must wait 72 hours after submitting their Self Assessment Tax return or making a payment before printing their Tax Year Overview otherwise it will not match the Tax Calculation.
There are lenders who are happy to receive accounts or even an accountants reference to enable self employed or business owners to get a mortgage.
Disclaimer – This does not constitute financial advice. Please speak to a professional adviser for information specific to your needs and circumstances.
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