A client has recently applied for a mortgage and the mortgage company is insisting on a SA302. How can we get this?
Just phone up HMRC and request the relevant years to be sent to your client.
They will normally send them out the same day. (which being the HMRC takes about 5 days to arrive, but it is quick by their standards).
I had a client last month who needed them as the mortgage company wouldn't accept anything else and was pleasantly suprised at how straight forward it was to get them issued.
Thanks for the reply. Just rang HMRC and requested the SA302. Now lets wait and see.
Bloody mortgage companies
Driving me round the bend - we've had a rash of lenders who, not content with copies of the accounts and certificates signed FCCA, also want an SA302. Do they need a blood sample too??
The other thing is that an SA302 shows absolutely nothing 'independent' to the lender, it's a mere snapshot of what the Revenue thinks the earnings and tax position of a taxpayer happens to be at that precise moment in time. If you were a dodgy borrower it would be a total piece of cake to generate an SA302 showing your £100K of earnings.
Mortgage info requests
We are currently going through a nightmare scenario with Halifax for a sole trader client.
They asked for 3 years accounts. Client has been trading for 2 years so we provided those. Then we had to provide PAYE info for the earlier year. Then we were asked for the shareholding, names of directors, registered office, etc. I rang the client, and the mortgage broker saying I couldn't supply this info as they are a sole trader, not a limited company. The response was .... well in that case they have 100% shareholding, please send the rest of the requested info!
One bit of info we faxed to them wasn't sent on a letterhead so it was rejected! We have been sending various bits of info for two weeks now ...... grrrrrrrrrrrrrrrrrrrrrr (and they always want it yesterday). I am positive they haven't a clue what they want, or what they want it for. I had to send explanations what the capital account was, ie. what is the capital account b/fwd, current years profit, cap introduced, Drawings, etc. Then they jumped on the drawings and asked a million questions about them.
I am coming to the conclusion I will sack any clients who want a mortgage from the Halifax!
EDIT: and the Halifax don't have email, so we have to fax everything. Surprise, surprise, they manage to lose the faxes. The client keeps hinting that we are the problem and the Halifax have said they never got them (even though we receive fax acknowledgements) and the Halifax can't be wrong. Is it worth it?????
Not just Halifax I promise you!
I could add another couple of lenders names with the story. Accountants certificate, accounts, tax returns & SA302 ... and clients with £250k joint income being turned down for a £300k mortgage just because they had incorporated their business a year ago. But its the same business I say ... sorry doesn't meet our criteria they say.
Yup, just asked HMRC for the last 3 SA302's it and was very easy. Remains to be seen how long they take to come though.
Fees for references
Would be interested to hear views on how you charge (or not as may be the case) a client for this type of work?