SA302 Tax Calculation

An SA302 is HMRC’s tax calculation for one tax year. It shows your income from every source and the tax due on it, worked out from the Self Assessment return you filed. Mortgage lenders ask for it because a self employed applicant has no payslips, and it normally goes in with the Tax Year Overview, which shows what HMRC has actually received from you.

Vtrahe, the English and Russian speaking accountants and law firm in Birmingham, prepares the return, gets both documents and deals with your broker’s questions about them, in English or Russian.

What Your Lender Will Probably Ask For

• SA302s for the last 2 tax years, and some lenders want 3.
• A Tax Year Overview for each of those years, with figures that match the SA302.
• Some lenders accept 1 year if you have been in the same trade for a while.
• Company directors are often asked for the company accounts too, because the SA302 only shows the salary and dividends you took out of the company.

Find out from your broker which lender you are applying to before anything is downloaded, because their rules are not the same.

The Return Has To Be Filed First

There is no SA302 until the return for that year is in. If your broker wants the latest year’s figures and you were planning to file in January, we can prepare and file it now, and the calculation is normally ready to print about 72 hours later. Clients buying in the spring or summer usually do this.

We Get The Documents One Of Three Ways

From your HMRC online account. Go to Self Assessment, choose the tax year and print the tax calculation. The Tax Year Overview is in the same part of the account, and up to 4 years of each are there.

From our filing software. As your agent we can print the calculation from the software the return was filed through. Many lenders accept this alongside the Tax Year Overview from HMRC, though some insist on HMRC’s own version.

By post. Call HMRC on 0300 200 3310 with your UTR and National Insurance number and paper copies are posted out. This is slow, so we only use it when the online account cannot be accessed.

Figures That Do Not Match Hold Up Mortgages

The underwriter compares the SA302, the Tax Year Overview and your bank statements, and the case stalls if they disagree. What usually causes it:

• The overview still shows tax owing because the bill was paid after 31 January.
• The return was amended and the lender has the old SA302.
• Part of the income came from abroad and the lender wants to see where it came from.
• The calculation from third party software looks different and the underwriter has not seen that layout before.

We sort these out with HMRC and, where it helps, write a short explanation for your broker.

Lower Tax Also Means Lower Income On Paper

The SA302 shows profit after expenses, not your turnover. Every expense claimed brings the tax down and also brings down the income the lender sees, so if you plan to apply for a mortgage in the next year or two, talk to us before the return is filed.

Check Your Figures Before You Apply

Our SA302 Tax Calculation Estimator lays your numbers out the way the SA302 does. It is a guide only, and lenders accept HMRC’s documents, not estimates.

Contact Us Today

Call +44 7756 548969 or fill in the Client Registration Form. Tell us which tax years your broker needs and when your mortgage appointment is. If the return is not done yet, see our Self Assessment page.