Lenders requesting SA302 from a Company Director

Lenders requesting SA302 from a Company Director

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One of my client has applied for a mortgage with Nationwide Building Soc and has been insistent upon receiving SA302 from him. He explained to them that he is merely drawing a salary and supplied last two years P60's and the copies of last two years filed accounts with Companies House. No dividends has been declared in the last two years trading.

What is the status of SA302 in this circumstances? The lenders and the mortgage advisers are both insisting to have SA302 to be supplied. I thought SA302 is only issued to self-employed and not to company directors on company's payroll?

Please help?

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By SoL
03rd Mar 2014 19:16

You (or the tax payer) can request a SA302 from HMRC for anyone on self-assessment. They stopped issuing them by default a few years ago but send them out on request. It usually takes a week from experience or you can ask for a fax (although some recent posts have indicated they're not doing faxes so readily).

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By stratty
04th Mar 2014 08:10

SA302

Standard practice for most mortgage applications these days regardless of what vehicle the client is trading through.

Your problem here obviously is satisfying that the applicant has sufficient income to meet the repayments.

The P60 income will be reflected on the SA302 so providing it is enough to satisfy the lending criteria you should be ok.

 

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By taxhound
04th Mar 2014 09:22

wife does not do tax returns

My client is a director of his company, his wife is not.  It is a family building co, so a proper family business which she is genuinely involved in, but as she is not a director and divis don't take her into higher rates, she does not do a tax return.  So we can't get an SA302 for her and the building society can't tick its box.  I have said I will write in to confirm but they are not happy....

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Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
05th Mar 2014 12:12

If there is no legal requirement for someone to complete a tax return, and they therefore don't complete one, then there is no SA302, simple as.

A P60 is a legal document showing income, a dividend voucher is a legal document showing income, the P&L account on accounts filed at Companies House is a record of monies available to shareholders. 

I know it doesn't tick lenders boxes, but surely they still are proof of income/ entitlement to income.

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By Mckay
06th Mar 2014 09:28

SA302 form

Our practice tend to register all directors/shareholders for self assessment regardless if they are receiving dividends or not. This then allows us to request an SA302 form as soon as the tax return has been submitted. Therefore when clients come looking for it for their mortgage or a buy to let mortgage we have it readily available. You can only request an SA302 form on the back of a tax return being submitted. We also write to 2 tax offices to ensure we get a response, below is a link to some tax offices we write to:

http://www.sa302form.co.uk/which-tax-office-do-i-write-to-for-my-sa302-forms/

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