Self-employed individuals who require evidence of their earnings to assist with mortgage applications will now find it easier to retrieve the information they require, following a change in process from HMRC. To discuss the new process contact our Bolton Accountants for more information.
For a long time, the process of retrieving the information which is required to support applications has been a common point of frustration for accountants and their self-employed clients. With HMRC coming under scrutiny for the inefficiency of sending such basic information to accountants.
Despite HMRC previously changing the way paper copies of individual’s tax calculations/ year overviews were requested, many accountants/ tax advisers/ individuals were seeing a contradictory message from mortgage lenders, whereby HMRC were suggesting the self-serve copy should suffice, but lenders refusing to accept them. To ensure a fluid approach, HMRC and UK Finance (formerly the Council of Mortgage Lenders) have been in discussions to ensure that the lenders’ requirements are satisfied in the online account.
The majority of lenders have agreed to accept these self-serve copies, although some smaller firms have opted out of this route, primarily due to the low volume of self-employed mortgages which they grant.
The paper copies which you may have been used to seeing will no longer be issued from 04 September 2017.
This new approach will see clients receive the required information instantaneously, rather than accountants writing to HMRC and waiting for two/ three weeks for the relevant information to be available.
Nicola Roby, Director at CHW Bolton Accountants said: “We welcome this change in process regarding SA302s. As everyone knows, buying a house is very stressful, and even more so for those who are self-employed. Requesting this information from HMRC has always been very inefficient due to the mortgage lenders’ requirements being so strict and the time delay in receiving the information from HMRC. This process should make the whole process instantaneous and not such an arduous task to retrieve such basic information.”
If you’re unsure of the process or would like some more information, please contact our Bolton Accountants for more information.
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