How many years SA302’s for mortgage?
Discussion
Morning PH
As per title, how many years worth of SA302’s do most mortgage companies want? I’m sure it’s 2 years, but wondered if that has changed in recent months.
We’re not ready to get moved just yet, but want to plan ahead as to what we’re doing.
What are the majority asking for?
Cheers
As per title, how many years worth of SA302’s do most mortgage companies want? I’m sure it’s 2 years, but wondered if that has changed in recent months.
We’re not ready to get moved just yet, but want to plan ahead as to what we’re doing.
What are the majority asking for?
Cheers
Ranger 6 said:
Interesting - I got the last two years SA302s from my accountant last week. When did they stop Eric?
They announced that there would be no more SA302s issued after September 2017.That is one of the reasons why lenders have switched to asking for what they refer to as the "Tax Year Overview" instead.
http://www.uhy-uk.com/resources-publications/tax-h...
Ranger 6 said:
Eric Mc said:
They announced that there would be no more SA302s issued after September 2017.
Many thanks - our lender is messing about and has told us they need more information even after providing two years of accounts. Hence the SA302 request.The SA302 was only ever a schedule of income, claims and allowances and resulting tax calculation based on what the taxpayer had provided to HMRC in their Self Assessment tax return.
Legally, it did not constitute any agreement to the figures by HMRC nor did it ever confirm that the figures shown on the SA302 were actually correct. All it effectively said was "HMRC confirms that this is what the taxpayer has told us. It could be a pack of lies - we don't know - and we don't really care".
That is why HMRC's attitude to providing SA302s was always very casual. Initially, they only issued them when -
a) a taxpayer submitted their return before October AND had not calculated their own liability i.e. they had not actually "self assessed".
b) the tax return was so riddled with obvious and glaring errors, even though the taxpayer may have attempted to calculate their own tax liability (as was the entire precept behind the Self Assessment system) HMRC felt they needed to recalculate the tax liability because the taxpayer's calculations were so materially out.
In most other circumstances, the taxpayer had to make a specific request for an SA302 to be issued. Most didn't bother.
The onset of Self Assessment coincided with the relaxation in proof of income to potential lenders, especially for the self employed - which was replaced by Self Certification. Some would say that the fact that both things happened around the same time is not really a coincidence.
I have a sneaking suspicion that the road to what became the banking collapse of 2008 was partly started on with the introduction of Self Assessment for tax in the 1995-97 period.
DeanR32 said:
Morning PH
As per title, how many years worth of SA302’s do most mortgage companies want? I’m sure it’s 2 years, but wondered if that has changed in recent months.
We’re not ready to get moved just yet, but want to plan ahead as to what we’re doing.
What are the majority asking for?
Cheers
......some will do one.......most will want two.....a few will want three......As per title, how many years worth of SA302’s do most mortgage companies want? I’m sure it’s 2 years, but wondered if that has changed in recent months.
We’re not ready to get moved just yet, but want to plan ahead as to what we’re doing.
What are the majority asking for?
Cheers
Ranger 6 said:
Interesting - I got the last two years SA3402s from my accountant last week. When did they stop Eric?
An SA302 has never been issued by Accountants.It was issued by HMRC.
They pulled the plug on these late last year.
HMRC have now given the Accountant the ability to produce a "Tax Calculation" that is almost identical to an SA302, this is what your Accountant would have issued you.
Lenders will also want Tax Overview forms to cross reference the tax paid in line with the Tax Calculation.....
Accountants have ALWAYS had the ability to produce tax calculations for their clients. The problem was that lenders were reluctant to accept these calculations as proof of income. They generally insisted on the SA302 which was only generated by HMRC.
The problem was that the SA302 had exactly the same legal standing as the calculations produced by the accountant - indeed, the SA302 was normally produced by HMRC from the figures PROVIDED by the accountant.
The problem was that the SA302 had exactly the same legal standing as the calculations produced by the accountant - indeed, the SA302 was normally produced by HMRC from the figures PROVIDED by the accountant.
Sarnie said:
....HMRC have now given the Accountant the ability to produce a "Tax Calculation" that is almost identical to an SA302, this is what your Accountant would have issued you.
Lenders will also want Tax Overview forms to cross reference the tax paid in line with the Tax Calculation.....
That explains why the documentation provided wasn't HMRC branded - the lender hasn't asked for the tax overview, yet.Lenders will also want Tax Overview forms to cross reference the tax paid in line with the Tax Calculation.....
Is it worth challenging the lender about the validity of these 'pseudo' SA302s or will they just make it more difficult to borrow?
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