New HMRC SA302 procedures slow to take effect

Personal Tax May 18, 2016

HMRC has decided to tighten security and is now refusing to fax copies of SA302 (tax calculation summary) to mortgage providers when self-employed people apply for a mortgage when acquiring a property. As a potential solution, HMRC has persuaded the Council of Mortgage lenders to propose acceptance of alternative documents printed from accountants’ software, meaning that for self-employed people with an accountant, the change should be seamless.

In other words, most mortgage providers should now accept instead of the HMRC SA302, the tax year overview confirming the tax due on the return submitted. It is also possible for the mortgage providers to cross check the tax due as per the accountant's calculation against the tax paid as displayed on the HMRC web site.

The institutions that have agreed on the new process at the time of the article publishing date are the following:

Aldermore Lloyds Bank
Bank of Ireland Mortgages PLC
Bank of Scotland National Westminster Bank
Barclays Nationwide Building Society
Birmingham Midshires Nottingham Building Society
Britannia Platform
Cheltenham & Gloucester Post Office Ltd
Cheshire Mortgage Corporation Precise Mortgages
Co-operative Bank Royal Bank of Scotland
Coventry Building Society Saffron Building Society
Danske Bank Santander
Ecology Building Society Scottish Building Society
GE Money Home Lending Scottish Widows
Godiva Mortgages Ltd TSB
Holmesdale Building Society Wave Lending
Halifax Woolwich
Kensington Mortgages

If a listed lender says it does not accept accountant-produced evidence, it may be that the policy change has not filtered down to the branch or broker. In such cases, informing them that their organisation is listed, and referring them to the lender’s head office for confirmation of the most current procedures should resolve the issue. If the lender has not agreed to accountant-produced evidence, the only option will be to call HMRC and await the SA302 in the post. For an updated list you should refer to the HMRC web site.


Franck Sidon

With over 15 years of experience as a Managing Director at TaxAssist Accountants, I have helped thousands of businesses and individuals achieve their financial goals and optimize their tax efficiency.