What is an SA302?
An SA302 Tax Calculation is a document issued by HMRC that summarises your income, taxes paid, and any reliefs or deductions applied. This is essential when applying for a mortgage, as lenders often require proof of income, especially for self-employed individuals or those with irregular earnings.
Key Information in an SA302:
- Income sources (self-employment, rental income, employed income, etc.).
- Total taxable income.
- Tax reliefs and deductions applied.
- Tax paid for the desired tax year.
SA302 Example:
An SA302 document includes detailed breakdowns of your income and tax. See the annotated SA302 example below:
Tax Year Overview: What It Is and Why It’s Needed
A Tax Year Overview complements the SA302 by confirming that your tax liabilities have been paid. Lenders often request both documents to ensure full transparency during the mortgage application process.
Tax Year Overview Example:
Below is an example of a Tax Year Overview, showing:
- Total tax owed.
- Tax paid for the year.
- Confirmation of payments made.
Tax Return Example: Supporting Documentation
A Tax Return provides a comprehensive breakdown of your income, expenses, and any deductions claimed. While lenders typically focus on SA302s and Tax Year Overviews, the Tax Return serves as an additional proof of income.
What Does a Tax Return Show?
- Income from all sources (e.g., rental income, self-employment, dividends).
- Declared expenses and reliefs.
- Total taxable income.
From Your HMRC Online Account:
- Log In: Access your HMRC online account at gov.uk.
- Navigate to Self Assessment:
- Go to “Self Assessment” and select the desired tax year.
- Download Documents:
- Select “View Tax Calculation” for the SA302.
- Select “View Tax Year Overview” for confirmation of tax paid.
- Save or Print: Download the documents or print them directly for lender submission.
By Phone:
Call HMRC at 0300 200 3310 to request these documents by post. Delivery takes approximately 10 working days.
Why Are These Documents Important?
Lenders use SA302s and Tax Year Overviews to verify income, especially for:
Self-Employed Applicants
Essential proof of irregular or multiple income sources.
Landlords
Demonstrates rental income.
Employed Income
Additional income streams outside regular employment.
Mortgage Brokers
Ensures documents meet lender requirements.
These documents provide lenders with a clear, HMRC-verified record of your income and tax payments.
FAQs About SA302s and Supporting Documents
What is an SA302, and how does it help when applying for a mortgage?
An SA302, or Tax Calculation, summarises your income and taxes paid. It’s vital for proving income to lenders, particularly for self-employed applicants.
How do I get a Tax Year Overview?
Log into your HMRC online account, navigate to Self Assessment, and download the document for your desired tax year.
Can I use my Tax Return instead of an SA302?
While lenders prefer SA302s and Tax Year Overviews, Tax Returns can support your application if required.
Are these documents mandatory for all mortgages?
No, they are typically required for self-employed individuals, landlords, or those with irregular income streams.
Can a mortgage broker help with these documents?
Yes, a mortgage broker can guide you through obtaining and submitting the correct documents to meet lender requirements.
Why Choose Compare the Mortgage?
At Compare the Mortgage, we specialise in guiding self-employed individuals and landlords through the mortgage application process. Here’s how we can help:
Document Guidance
Assistance with downloading SA302s, Tax Year Overviews, and Tax Returns.
Tailored Support
Expert advice for presenting income documentation effectively.
Streamlined Process
Ensure your application meets lender requirements without delays.
Get Your SA302s Today
Understanding how to obtain and use SA302s, Tax Year Overviews, and Tax Returns is crucial for a smooth mortgage application. Contact The Compare the Mortgage today for expert advice and step-by-step guidance in securing the right mortgage for your needs.