Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts

Thursday, August 10, 2017

HMRC stops providing SA302 for mortgage applications

Today accountants as well as their clients still have to call HMRC for a paper copy of the SA302 form which is the tax calculation for a given tax year.

It's because lenders will not accept the self-serve copy printed from the HMRC online account or the commercial software used to file the self assessment return, or their commercial software does not print an acceptable version.

HMRC has been in discussion for a while with UK Finance (formerly the Council of Mortgage Lenders) and their members to understand lenders’ requirements and make the necessary changes so that they will accept self-served copies of the tax calculation from the HMRC online account or the commercial software used to file the self assessment return.

Wednesday, May 18, 2016

New HMRC SA302 procedures slow to take effect

HMRC has decided to tighten security and is now refusing to fax copies of SA302 (tax calculation summary) to mortgage providers when self employed people apply for a mortgage when acquiring a property. As a potential solution, HMRC has persuaded the Council of Mortgage lenders to propose acceptance of alternative documents printed from accountants’ software, meaning that for self employed people with an accountant, the change should be seamless.

In other words, most mortgage providers should now accept instead of the HMRC SA302, the tax year overview confirming the tax due on the return submitted. It is also possible for the mortgage providers to cross check the tax due as per the accountant's calculation against the tax paid as displayed on the HMRC web site.

The institutions that have agreed at this time on the new process are the following: