HMRC’s latest update confirms acceptance of tax calculations from agents

10th August 2017

 

HMRC’s latest Agent Update announces their plan to withdraw paper copies of the SA302 (for mortgage application purposes) for taxpayers whose self-assessment tax returns are submitted by an agent.  This will take effect from 4 September 2017.

To date we have been calling HMRC in order to obtain a paper copy of a client’s tax calculation where the client’s mortgage lender will not accept copies printed from HMRC’s online account or our commercial software as, in our experience, many lenders would not accept this new procedure. Clients therefore had to wait up to two weeks for HMRC to issue the required paperwork by post.

However, HMRC have recently been in further discussions with UK Finance (formerly the Council of Mortgage Lenders) to ensure that lenders will now accept copies of the tax calculations printed from third party software, supported by a copy of the Tax Year Overview obtained from HMRC’s online account.  We are advised that the majority of lenders have agreed to the new procedure, prompting HMRC to make the decision to cease issuing SA302 calculations to agents altogether.

The up-to-date list of Mortgage Providers and lenders that have agreed to accept tax calculations that agents have printed themselves can be found here: https://www.gov.uk/government/publications/mortgage-providers-and-lenders-who-accept-a-sa302-tax-calculation-or-tax-year-overview

In theory this should speed up the mortgage application process, as we are able to obtain the required paperwork at any time (providing we have submitted a self-assessment tax return online).



 
Other items in Blogs
 
Jodie Pheby
22nd July 2021 Accounts Basis Period Reform – Consultation

Under current rules, businesses draw up annual accounts to the same date each year. The profit/loss for the tax year is usually the profit/loss for the year to the accounting date – called the basis period.  Tax is paid on profits earned in the basis period ending in the tax year in question.   However,…

Read More »

Nick Edgley
15th July 2021 31st July: Can your tax payment be reduced?

Many taxpayers who are required to file a self-assessment tax return to HM Revenue & Customs should now be preparing for their next tax payment which is due by 31 July. The amount payable is the second payment-on-account for the 2020/21 tax year and is automatically calculated as half of the total tax liability for…

Read More »

Ian Piper
6th July 2021 30-Sep-21: End of most COVID support measures for SME’s

When COVID directly impacted upon the UK in Spring 2020, the Government introduced a range of measures specifically targeted to help businesses survive the expected period of financial strain. Such businesses, that are still here, should now be planning ahead for when this support is gradually unwound: 21-Jun-21 Deadline for arranging with HMRC when to…

Read More »

Megan Turner
5th July 2021 Charity annual returns

The charity annual return service is now available for 2021 and can be found on the link below. https://apps.charitycommission.gov.uk/   Charities need to submit their annual return within 10 months of the financial year end.   Dependant on the level of income, the annual return has different requirements; Income under £10,000 It is only the…

Read More »

Bethan Hassey
1st July 2021 Changes to the reduced rate of VAT for hospitality, holiday accommodation and attractions

  In July 2020 the government announced that VAT registered business who operate in the hospitality and tourism industry could use a temporary 5% reduced rate of VAT on certain supplies compared to the standard 20%. The objective of this legislation was to support businesses in this sector during the Coronavirus pandemic and assist with…

Read More »

Thomas Nicholls
15th June 2021 Tax on Cryptocurrency does not have to be cryptic

Within the last 10 years the cryptocurrency scene has exploded from the first decentralised cryptocurrency, Bitcoin, being created back in 2009 to now more than 4,000 different cryptocurrencies being in existence with a total market cap value of over £1trillion.   This has led to the creation of the Cryptoassets Taskforce which was announced back…

Read More »