More and more lenders are asking to see a copy of the HMRC SA302 forms covering the past two or three years of tax submissions. In this post we cover why they are asking for these forms and how to get them. But before we get to these two points, what is it? The SA302 is a response from HMRC. Once you have submitted accounts, HMRC respond with a SA302 form which states how much tax you owe or have overpaid by. In most circumstances, we have found that applicants cannot provide this form when requested and a copy has to be ordered from HMRC.
Why are lenders asking for this form?
The SA302 is a brief summary of the income that has been reported to HMRC and the tax that is due as a result. Therefore, this form as issued by HMRC is an irrefutable certificate that documents exactly how much income is declared. From our experience, if you use a reputable accountancy practise with Chartered qualifications, lender are less likely to make this additional request.
Lenders are more vigorous than ever in stamping out mortgage fraud. Declaring a higher income than one submits to HMRC is mortgage fraud. The SA302 is an accurate way to ensure the income declared on a mortgage application is correct. Our advice for any owner of a small business, or self employed person, is to order a copy of this form right at the start of a mortgage application and it is therefore ready if the lender subsequently requests it.
How to get the SA302 form from HMRC
In some circumstances your Accountant may have it on file, or you may have retained a copy when sent from HMRC. However, in the vast majority of situations we find that a copy needs to be ordered from HMRC.
A little tip before you call; make sure you have plenty of time and patience. The lines are frequently busy and you may experience being on hold for some considerable time. Our record to date is 24 minutes.
The Full Name of the person you want the SA302’s for (easy if it’s you)
Full current Address
Date of birth
10 digit individual tax code
National Insurance number (not essential if you have the 10 digit code above, but we like to have both)
Be sure which tax years you need; we would recommend you request the last three tax years with the most recent ending not more than 18 months ago – that will satisfy most Lenders.
Unless you are the tax payer the HRMC agent will not discuss detail with you. So be sure returns have been filed for the years figures you need.
HMRC will post the SA302’s only to the registered address. Their post is very slow and while they quote 7 to 10 days, we have found it takes more than 30 most situations to date. This is the reason why we recommend ordering it straight away rather than wait for a lender to potentially request it.
You can ask HMRC to fax the document to you, or directly to your broker or accountant – but always ask for it to be posted as your broker will usually be required to certify that they have seen the original. So although a faxed copy can be used to confirm figures and give some documentation to work from – an original will be required.
The SA302 phone number is 0845 900 0444
If your mortgage is being arranged by Harvey Bowes Limited, please ensure you ask for it to be faxed to 029 20 020 495 – from our experience we receive a fax copy within 3 hours of request. So we can get to work with the fax copy provided it is directly from HMRC provided we have confirmation the original will follow in the post.
One more note on getting a copy ‘post haste’
If you tell HMRC it is needed for a mortgage application and ask for the copy to be faxed urgently, they will do it much more quickly than otherwise. Don’t think you are on your own asking for this. It is a daily occurance for HMRC and the people who ask in the right way and take a moment to explain why will find they really can be helpful!
Did you know?
There are lenders offering mortgages to the self-employed and business owners based on the latest one year’s accounts or SA302 only – so if you have had a better trading profit in the last tax year, they will base the application on that instead of the more popular average of two or three years which is the case with many lenders.
If you require further advice on mortgages for the self employed or business owners, please contact Harvey Bowes on 02920 676716
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