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SA302 Examples

The SA302 form is a useful document that most business owners and the self-employed can benefit from having at hand. Therefore, it makes sense for you understand what it is, whether you can get one, and how you can use it in a way that benefits you.

What is the SA302 form?

Many business owners have never heard of the SA302 form, so, first, we are going to explain what it is. Simply put, it is the form that the tax authorities can send to businesses and individuals who have completed a tax return.

What details are included on the SA302 form?

The details included on the form are as follows:

Total income received – this figure is your income for the tax year. This is your pay, fees paid and profits. It will also include taxable benefits such as dividends, expenses and savings interest, where appropriate.

Total taxable income – this is the income on which you actually had to pay tax. It is basically your total income received minus deductibles on which you do not have to pay tax.

The total amount of income tax due – this figure is how much you need to pay in tax.

There are more details included on the form, but the above are arguably the most important statistics. Using them you can demonstrate how much income you logged with HMRC, making it very useful.

What is the SA302 form used for?

The majority of people use the SA302 form as a way to prove their income. It is also a useful reference for your accountant and gives you a quick overview of the financial health of your business.

How and when can the SA302 form be used?

The form can potentially be used in several ways. Below are a few SA302 examples to help you to better understand how to use this form to help your business to be a success.

Using the SA302 form to help you to secure a mortgage or loan

If you are planning to expand your business and want to purchase new premises, the chances are you will need a mortgage. Increasingly, financial providers are asking potential borrowers for more indepth proof of income.

Lenders are particularly interested in the SA302 form because it is a good way of getting a snapshot of an applicant’s income. All the information they need is there in one place and it is presented in a brief and concise way. Importantly, the form is issued by HMRC, which means it is viewed as a reliable source of information.

If you have not received a SA302 form and are planning to try to borrow a large sum of money it is well worth getting one. Your accountant can help you to get hold of what you need. However, you will need to meet the criteria to be able to secure one.

It is usually possible to secure these forms for several years. Typically, a lender will want to see the forms from the last three or four tax years. When you apply for the back copies tell HMRC that you plan to use them for a mortgage application. This will usually speed up the process and help you to get them back faster.

An alternative to applying for the SA302 from HMRC

If you do not have a SA302 form yet, do not worry. You can still provide potential lenders with what they need to process your application. This is commonly referred to as a self-serve SA302.

The information on this statement is also clear, concise and viewed as trustworthy. Unfortunately, until recently many financial institutions were not happy to accept these self-serve income statements.

During 2017, HMRC came to an agreement with UK Finance (formerly the Council of Mortgage Lenders). The terms of this agreement mean that far more lenders will accept now accept these self-serve statements.

This is a good thing because it means that you can pull together the documents you need to support your application in just a few minutes. There is no need to wait for HMRC to receive your application, process it and then for you to apply for your SA302 form. All you need is access to a printer and your HMRC account.

The importance of self-serve SA302s

HMRC maintains a list of lenders who do not require mortgage or loan applicants to provide an actual HMRC issued SA302. If you are someone that files their taxes online, it is now quite important that you check this list before choosing which firms you will approach for a loan.

That way you can avoid wasting your time applying for loans for which you cannot secure the required paperwork. Instead, you can focus on approaching lenders who definitely do accept the self-printed SA302 style forms.

How to get copies of the SA302 form

If you are do not do your tax return online you will need to apply for the SA302 by filling out a paper application form. Be sure to allow at least two or three weeks for HMRC to receive and respond to your SA302 request. Before applying check that HMRC has the correct address for you on their files.

When you apply, you will need to provide your name, address, date of birth and your Unique Tax Reference (UTR). The UTR is the 10-digit code that is only usable by you. Providing your National Insurance Number (NI) is not essential, but it can help to speed up your application slightly. Therefore, it is really worth including it on your application.

Be sure to use the most up-to-date version

It is important to bear in mind that if your tax return has to be reviewed the details on your SA302 form will have changed too. Therefore, when you apply for a mortgage or loan it is important to check that you are using the latest version. The details of any loan application have to be accurate. If not, then there is a risk that the offer of a loan or mortgage could be pulled at the last minute.

If you need further assistance, speak with your accountant who will be able to advise in more detail. For an example of the SA302 form, click here.

Posted by Mark
October 31, 2017
Finance Tax

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