As HMRC moves all its services online only, it has confirmed that more mortgage lenders will accept printouts of online self assessment documents to support loan and mortgage applications, although the new process is not fully operational as yet
Following discussions with the Council of Mortgage Lenders (CML), HMRC has updated a number of online documents so that borrowers can use them more easily in mortgage applications. However, lenders can still demand paper documents and HMRC states only that ‘lenders can consider accepting them as evidence of income returned to HMRC for loan or mortgage purposes’.
Reflecting demand for online printouts, particularly from tax advisers for their clients, HMRC has improved the Tax Calculation (SA302) and Tax Year Overview so lenders can consider accepting them as evidence of income returned to HMRC for loan or mortgage purposes. The addition of the Tax Year Overview as evidence addresses Financial Conduct Authority’s (FCA) concerns about the robustness and veracity of the Tax Calculation.
The changes follow concerns from tax advisers that despite digitisation of HMRC’s services, documentation was not being output or available in an acceptable format for lenders.
‘The new process is still embedding. Some lenders will accept copies of the online documents while others will ask for original paper copies. For now, it’s probably best to check with the lender what they accept to avoid any unnecessary delay or confusion,’ according to astatement in the recent HMRC Agents Update, issue 48.
The new process
If the lender asks for copies of online documents, tax advisers and individual taxpayers will be able to print them from their online account without contacting HMRC.
To access and print the Tax Calculation (SA302) and Tax Year Overview, tax advisers and individual taxpayers will need to be registered for HMRC Online services.
If you send tax returns using:
- HMRC software, you can print both documents from HMRC Online Services; or
- Commercial software, you can print the Tax Year Overview from HMRC Online Services, but you need to use your own software to print the Tax Calculation.
If the lender asks for paper copies, mortgage borrowers will have to contact the HMRC Self Assessment Helpline on 0300 200 3310 to request paper copies.
To access client information, tax advisers need to be registered as an authorised agent. Further information is available here