As of 4 September 2017, HM Revenue & Customs (HMRC) is no longer issuing paper SA302 forms to taxpayers.
The document, which is required by most mortgage lenders in order for self-employed individuals to successfully complete the mortgage application process, could previously be obtained by either such individuals themselves, or by their accountants.
However, HMRC has now changed the way in which it issues details of tax calculations and tax year overviews – and the tax authority will no longer issue paper copies of the form.
Instead, it will provide digital versions only, which may pose real problems for self-employed individuals who are trying to get a mortgage. In some cases, the issue may restrict the number of lenders that are willing to offer mortgage deals.
Reports have already emerged of lenders insisting on original paper copies rather than electronic printouts.
When applying for a mortgage, self-employed individuals are now required to supply the relevant year’s tax computation, along with the tax year overview printed directly from HMRC’s online services website, in order to act as a self-serve SA302 that will satisfy lenders.
HMRC has already undertaken discussions with UK Finance, formerly the Council of Mortgage Lenders, about lenders’ requirements. However, the list of lenders who will accept self-serve SA302 forms noticeably omits a number of prominent high street names.
Due to this, self-employed individuals are advised to check their lender’s requirements early on in the mortgage application process to avoid disappointment.
