Many mortgage lenders are now asking to see copies of HMRC SA302 forms covering the past two or three tax years.
The SA302 is a response from HMRC which is issued to those who file a paper tax return before 31 October following the end of the tax year. If you or your accountants have filed a tax return online you will have to request a SA302 form from HMRC.
The form shows your income for the year and how much tax you owe. If you have no income to declare in the UK you will not require a self-assessment so you will not have an SA302 or a tax liability. If you are adhering to Non-residency rules, on your tax return we are only submitting ‘your days’ information, your overseas income is NOT included in the tax return as it is NOT required. Therefore your SA302 will show zero overseas income.
If you are in full time employment and all income is taxed under PAYE then you will not require a self-assessment as you have no untaxed income to declare.
Why are lenders asking for this form?
The SA302 is a brief summary of the income that has been reported to HMRC. It is effectively a certificate that documents exactly how much income you have declared in that year. Therefore form SA302 is an easy way for a lender to verify that the income on a mortgage application is the same as you have shown to HMRC.
Our advice for anybody considering getting a mortgage is to order a copy of the SA302’s right at the start of a mortgage application so they are to hand if a lender subsequently requests them.
How do you get form SA302 from HMRC?
Your accountant can get it for you. However if you file your own return online you will have to call HMRC to order one. The HMRC Self-Assessment helpline number is 0300 200 3300.
Be sure which tax years you need – I would suggest you request the last three tax years as this will satisfy most Lenders.
Make sure you have filed your returns for the years in question! Lenders don’t like old information.
HMRC will only post the SA302‘s to the address shown on their records. Make sure that this is up to date. They quote 7-10 days but it can take longer.
You can get HMRC to fax the forms to you or your mortgage broker. You will also need the originals as your broker will need to see these. Faxed copies will get things moving. Tell HMRC it is needed for a mortgage application and ask for the copy to be faxed urgently, they are then likely to do it much more quickly than they might otherwise. It isn’t an unusual request. Faxed SA3022 will not include your UTR number as HMRC black it out.
Tel: 01686 610662 option 6