Mortgage lenders require external evidence of earnings to support mortgage or loan applications. Until now they have been asking for HMRC’s paper copy of the Self-Assessment (SA) tax calculation (SA302) as evidence of income.

HMRC has been working with the Council of Mortgage Lenders on some improvements to SA online documentation so that lenders may consider them as evidence of income declared to HMRC and to meet the Financial Conduct Authority challenge over the robustness of the tax calculation.

HMRC has made changes to the online ‘Tax Calculation’ which shows the breakdown of the income returned on the taxpayers tax return, including commercial versions, and the ‘Tax Year Overview’ which confirms the tax due from the return submitted to HMRC and shows any payments made, cross referencing the tax calculation with HMRC records.

A document outlining the new process as well as providing information on how to access and print out a client’s Tax Calculation and Tax Year Overview is also now available.