The End of the SA302
It has recently been announced that with effect from Monday 4 September, HM Revenue & Customs will no longer issue paper based copies of the SA302 to taxpayers or their agents.
The SA302 is effectively HMRC's version of a indvidual's income tax calculation for a respective tax year. It is issued by HMRC, upon request, following the submission of a self assessment tax return. It shows the various taxable income streams received by an individual, along with the tax liability for a year, any tax suffered at source during the year and any balance of tax payable to HMRC (or repayable to the taxpayer).
For many years, an SA302 has been used by self employed individuals and company directors to verify their annual taxable income, and it has become an important piece of evidence often requested and required by brokers & lenders when processing a mortgage application.
HMRC have been working closely with the Council of Mortgage Lenders and software providers to ensure that printed tax calculations from commercial software and HMRC's online account will be acceptable to lenders. This calculation will also need to be paired with an HMRC 'Tax Year Overview' for the corresponding tax year, which is available to print or download from HMRC's online account.
HMRC have produced a list of lenders who have signed up to accept a tax calculation and tax year overview. Please find a link to the list of lenders below:
The new process should make it quicker and easier for taxpayers to access the information required by lenders to verify income. It will also save up to two working weeks by allowing the data to be printed or downloaded on demand, rather than waiting for HMRC to send out paper documentation, which should hopefully be viewed as a change welcomed by taxpayers.
Article written by Gareth Bridgland