Santander mortgage reference

Reference required

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Hi  A client has asked me to provide a mortgage reference, which I have no problem with.  The problem though is that the reference asks for income declared for tax purposes.  In this case, the client has had losses from earlier years to offset against income for the period covered by the reference, so his taxable income is nil, even though there is a trading profit.  So what goes on the return?   All replies welcome.

Replies (11)

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By johngroganjga
14th Jun 2016 11:17

His result for the period is the trading profit you say he has made. So that is what you report.

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Replying to johngroganjga:
By Paul D Utherone
14th Jun 2016 16:30

Until Santander want the SA302's and that shows something different :)

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Replying to Paul D Utherone:
By Tim Vane
14th Jun 2016 17:31

Why would the SA302s show something different?

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Replying to Tim Vane:
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By carnmores
14th Jun 2016 20:35

Losses b/f, in these cases I attach a schedule and tax return

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Replying to carnmores:
By Tim Vane
21st Jun 2016 10:36

The new SA302 format shows the total income AND the loss relief b/fwd separately, so should not be an issue.

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Replying to Paul D Utherone:
By johngroganjga
15th Jun 2016 10:09

Quote:

Until Santander want the SA302's and that shows something different :)

In which case just attach the profit adjustment computation - which is a reconciliation of the actual profit with the tax adjusted one.

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blue sheep
By NH
21st Jun 2016 10:39

Your question just illustrates the stupidity of the mortgage lenders now relying on SA302's - this is a regular problem I come across, say for example a ST with normal profit of 35k buys a van one year for 20k and claims AIA - a vast difference between accounting profit and the SA302 figure, but try and explain that to the lender

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By carnmores
21st Jun 2016 10:44

Maybe its time for HMRC & CML to devise a new online form , I shant hold my breath

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By stuart46
21st Jun 2016 10:54

If it's Santander I'd tell the client to go to another lender.

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By Ammie
21st Jun 2016 11:02

I find that HMRC and lenders are generally poles apart in their requirements and understanding of each others information.

SA302's and tax overviews appear to me to be a tick box compliance exercise and not much more. Too often the management of loan applications lack common sense and intelligent assessment.

To answer your query the periods earnings are the relevant figures and should not be affected by losses brought forward, unless the loss making periods are part of the income periods being considered, in which case the average earnings will be effected.

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By Swimmingagainstthe Tide
29th Jun 2016 11:42

We get a number of requests for references (usually mortgage or rental ) that ask questions that are either ambiguous or don't make any sense in relation to the client's circumstances. We nearly always have to add caveats with an accompanying letter but these very rarely if ever invoke a response. It seems to me that it is a box ticking exercise and they don't really care what the reference says as long as they get one.

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