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SA302 and Mortgage Applications

SA302 and Mortgage Applications

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This week we've had two separate and not connected requests from mortgage providers to obtain forms SA302 (Tax Calculation) from HMRC.

Looking at HMRC's website they seem to indicate that they'll only issue an SA302 if there is an amendment to the SA return.

Please could someone clarify the position, and what's the best method for requesting and getting an SA302 quickly for mortgage application purposes.

Thanks.

Replies (22)

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By justsotax
25th Oct 2012 15:43

call them...

i think what they are referring to regarding amendments is where they will automatically issue an SA302.  

 

I believe (although not checked) that the SA302 is available to download online, however it is only where the individual has submitted the return online themselves (why it isn't available as an option to agents only hmrc can answer....presumably they trust the figures we submit less than an individual doing his own return!?!?)

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By taxhound
25th Oct 2012 16:07

I had this recently

I tried to explain that SA302s are not issued where returns are filed electronically.  I said I would write a letter confirming the figures submitted, but someone in the building society could not tick a box, so there was a major problem.

I rang the tax office and they sent SA302s to the client for the relevant years - quite quickly too, but of course it still held things up.

If someone can show me where to print them on line I would be very interested to know as I looked everywhere (the building society insisted it was possible - happy to be proved wrong...)

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By Roland195
26th Oct 2012 11:55

Logical Fallacy

The problem that these clowns desperate to cover their own backsides cannot grasp is that SA stands for Self Assesment. The client could file any rubbish on their tax return then request an SA302 from HMRC that will just confirm the same.

What these banks/finance companies thinks this proves is beyond me.

 

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By justsotax
25th Oct 2012 16:16

@roland...agreed!

it seems the banks now want an SA302 ahead of anything [email protected] if you are submitting using software you cannot print off an SA302, you can only do it where you use the revenue software.  

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By lizmoss
25th Oct 2012 16:43

Agent line

When my clients need an SA302 I can't print them out from HMRC as I use commercial software. I simply call the agent line at HMRC and they send them out in the post, usually within a couple of days.

It's not a big problem getting them, the agent helpline can be surprisingly good for some things!

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By StephenElms
25th Oct 2012 16:56

We use HMRC own software for returns filing.  I am not aware of being able to view an SA 302 on-line, nor request it either off the web.

"SA302 Find out more - Self Assessment tax calculation

The form you're looking for can't be downloaded but you can find help understanding your tax calculation here"

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By justsotax
25th Oct 2012 17:03

my understanding from the revenue was

that you could do it...perhaps they meant only if you were the individual registered (rather than agent)

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Man of Kent
By Kent accountant
25th Oct 2012 18:37

Maybe...
...I'm missing something but I use Taxcalc and can generate a SA302 which is available as a report.

Have done this several times, I know the same can be done with PTP

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By vince8
26th Oct 2012 09:44

HMRC will issue on request

I had a similar issue last year, the lender would not accept my letter since my qualifications were inadequate. They requested SA302 and HMRC faxed one to me on the afternoon I requested it!

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By Steve Holloway
26th Oct 2012 09:51

It is coming ....

The abilitty for the agent to print the SA302 from the agent screen is high on the list of development tasks .. or so I read about 6 months ago.

The point about it being self-assessment and therefore not very useful as evidence is correct to a point but if the tax payer is willing to pay tax on an income then they probably earned it! Of course they could amend after they have their mortgage but most people are not going to risk an enquiry from HMRC just to get a mortgage!

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Replying to JWB:
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By Roland195
26th Oct 2012 11:36

Tax Calculation

Steve Holloway wrote:
The point about it being self-assessment and therefore not very useful as evidence is correct to a point but if the tax payer is willing to pay tax on an income then they probably earned it! Of course they could amend after they have their mortgage but most people are not going to risk an enquiry from HMRC just to get a mortgage!

Even if we accept that amended filing lead to a significantly higher enquiry risk, an SA302 is not a useful confimation of income for the self employed as it only shows taxable profits which can often be very different from accounting profits due to Annual Investment Relief for instance.

Conversely, a business with much disallowable expenditure like entertainment could show the opposite - a higher taxable profit than is actually the case.

Which one is the most accurate indication of income?  

 

 

 

 

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By MJShone
27th Nov 2012 16:16

Kent accountant

I think most commercial software will print a tax calculation which might even be called an SA302. However, that's not what the lenders want - they want something that comes from the Revenue.

I agree with others - the Revenue will send them out on request.

Part of the problem is that the lenders don't know what they're asking or why they're asking - it's just something on a ticklist!

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Jennifer Adams
By Jennifer Adams
26th Oct 2012 12:25

SA302 update... read this...

I too recently had a request from a mortgage provider for a SA302 when one of my clients wanted a mortgage.

Easy to obtain from HMRC - I got client to ring saying it was urgent etc etc and it arrived within 5 days.

HOWEVER>>> I spoke to the mortgage broker about this and he said that all providers he dealt with insisted (note the word... insisted) on SA 302's now - not interested in receiving accountants letters. Read his email for a further interesting development...

Hi Jennifer All i can say is it is a sign of the times. Most lenders will not accept references from accountants as they consider it less likely for a fraud to be committed if the figures have come direct from the Inland Revenue. There are rumours that mortgage companies will have access to clients income direct from Revenue very soon. 

 

 

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By gavingr
26th Oct 2012 12:28

Will do so by fax

Having requested them by post for some time now I recently discovered (via a mortgage advisor!) that HMRC will be happy to fax them across and in the 2 or 3 cases this has happened it was here within a couple of hours.

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By ccassociates
26th Oct 2012 12:34

I concur

SA 302 can be printed from most commercial tax return software but not all call it SA302 Tax Calc does and I have had success in using these. I do however always request an "official" copy via the agent helpline and these appear quite swiftly,just in case the lender rejects the taxcalc version. But as mentioned above lenders dont actually know what they want how many times do you get a request,for audited accounts, for Bob the builder.

Problem is that SA302 shows taxable income, I have clients who claim SED so taxable income is nil even if they earned £100k, also non res clients who earn big money but UK taxable income is minimal.(perhaps a forces pension)

Its problem which is rife in the industry our answer was to suggest clients use a particular mortgage advisor who you recommend,and who understands the problems with SA302. The Banks simply just dont get it.

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By newmoon
26th Nov 2012 15:59

Update

As an update to the above post, on 6th November we requested forms SA302 from HMRC for a client and were told during the phone call that they had been requested but it would take two weeks for HMRC to send them out. As of today everyone is still waiting. We have phoned up HMRC today who have said they have requested new copies to be issued, but now it will take three weeks for them to be sent out!

It's not just the lenders stalling in lending funds, HMRC and forms SA302 are a major stumbling block also. 

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By vince8
26th Nov 2012 16:07

Fax

If you call the agent help line they should print them off and fax to you. You might get a numpty who has to request them simply because you were unlucky and got somebody who answered the phone!

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Replying to meadowsaw227:
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By newmoon
26th Nov 2012 16:21

We'll try and get them faxed.

Ok thanks. The Agent Helpline have been printing them out there and then and saying they will be posted out, and that's what's not happening. We will phone back and see if we can get them faxed to us.

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By taxhound
26th Nov 2012 16:16

printing them from HMRC's website

If HMRC are getting fed up with these requests, they should make them available to print on the agents' website.  Then we could do it ourselves and save us, and them, a load of time and effort.

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Replying to DMGbus:
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By newmoon
26th Nov 2012 16:21

Agree

taxhound wrote:

If HMRC are getting fed up with these requests, they should make them available to print on the agents' website.  Then we could do it ourselves and save us, and them, a load of time and effort.

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By sweetvanilla
05th Feb 2014 15:54

sa302 form

I'm currently in the process of applying for a mortgage with Halifax. As I am self-employed Halifax have asked to see my last 3 years SA302's as proof of income. So i contacted HMRC on the phone number 03002003300 and asked for them. After approx 10 days i received 3 letters and none of them specified is a SA302 form. I even surfed the internet trying to find a copy of this form so i could have an idea about the way it should look. The best i found is this https://www.dropbox.com/s/tpo29rmsvszfvbi/sa302.zip . Unfortunately none of those letters i received looks that way. Can someone send me a website where i can see a copy of this form? Thank you.

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By ginbin
23rd Feb 2014 11:03

I've just had a mortgage Advisor make me feel really silly as I sent what I felt showed the tax liability including the accounts but he said "this doesn't look like anything we've received for other self employed applicants" Having seen this thread it all makes sense as to why I don't have the relevant information to hand.

I will call HMRC tomorrow and see if I can get something faxed over, but agree HMRC should make it available to download which would surely save a lot of additional work for everyone.

 

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