An SA302 is HMRC's calculation of your income and tax for a given tax year. A tax year overview confirms what was actually charged and paid. Lenders want both, for the same years, and the figures must match. Getting this wrong is the most common avoidable delay on a self employed mortgage.
What each document is
The SA302 — the tax calculation. Produced from your submitted self assessment return. It shows your income by source, your total taxable income, and the tax due. This is the document lenders use to establish what you earn.
The tax year overview. A separate statement showing the tax charged for that year and what has been paid. It confirms the return was actually submitted and the tax accounted for.
The first says what you declared. The second confirms HMRC accepted it. Lenders want both because either alone can be misleading.
Why they must match
If the SA302 shows one figure and the tax year overview shows tax charged on a different one, an underwriter will stop and query it.
The usual innocent explanations: the return was amended after first submission, the documents were downloaded at different times, or two different tax years were printed by mistake.
Whatever the cause, a mismatch means questions, and questions mean delay. Download both documents for each year at the same time, and check the figures line up before sending them.
How to get them
Through HMRC online. Sign in to your personal tax account or the self assessment service. The tax calculation sits under the option to view or print your return for the relevant year; the tax year overview is under self assessment statements or tax years. Download both as PDFs.
Through your accountant. If they filed on your behalf using commercial software, they can produce the equivalent tax computation. Most lenders accept accountant-produced calculations provided they are accompanied by the HMRC tax year overview — the overview must come from HMRC either way.
By post from HMRC, if you cannot access it online. Slow. Start early if this applies to you.
How many years
- Most lenders: two years, sometimes three
- Some lenders: one year, especially where you previously did the same work as an employee
- A few: the latest year only, if the trend is upward
Always download the most recent three if you have them. It costs nothing and it means we are not waiting on paperwork if we place the case with a lender that wants more.
The problems that come up most
The return was filed late. If a return is submitted close to or after the deadline, the tax year overview may not show as expected for a period afterwards. Lenders sometimes ask for evidence the tax has been paid.
Tax is outstanding. Many lenders want to see the tax due has been paid, or that a formal payment arrangement is in place. An unpaid balance showing on the overview is a common query.
An amended return. If you amended after first filing, keep both versions and be ready to explain. The lender will want the final position and a reason for the change.
Downloading the wrong year. UK tax years run April to April and are labelled by both years, which is easy to misread. Check the dates on each document.
Only one document. Sending the SA302 without the overview, or vice versa, guarantees a request for the other and costs several days.
A simple checklist before you send anything
- Download the SA302 and the tax year overview for each year, in one session
- Check the tax year on each document matches what you intended
- Check the income figure on the SA302 corresponds to the tax on the overview
- Confirm any tax due has been paid, or an arrangement is in place
- Send them as clear PDFs, not photographs of a screen
Five minutes here regularly saves a week later.
Get this ready before you apply
If you are thinking about a mortgage in the next few months, gather these now. It is the least interesting part of a self employed application and reliably the part that holds it up.
Bring them to your first appointment and we will tell you immediately what your figures will support.
Call 0116 277 7536 or see self employed mortgages in Leicester.
More guides: self employed guides for Leicester.
