Tax Calculations and Tax Year Overviews, proving self employed income
To prove your income for a mortgage application as a self employed person you will require:
- Tax Calculations covering the requested tax years*
- Tax Year Overviews to accompany each tax calculation
*typically the last 2 or 3 tax years
A tax calculation shows your income for the year, your personal allowance, and the resultant tax bill due on the year. This may be obtained from the following sources.
Who will typically provide a Tax Calculation printed from commercial tax calculator software
Your HMRC online account (Gateway)
Which can be accessed by your Accountant or by yourself (if you have the log ins)
Tax Year Overview
This is a statement of your tax bill for the tax year, the tax paid, and any amount outstanding. This can be obtained through your HMRC Online account (Gateway) which can be accessed by your Accountant or by yourself (if you have the log ins)
Further issues for the self employed
Your tax must be paid to date
If not, expect your mortgage lender to ask questions.
Your figures must be penny accurate
The tax due on the Tax Calculation and the Tax Year Overview should match to the penny (it frequently does not). If the figures do not match, your mortgage lender will query this and insist it is rectified. Therefore, if your figures do not match, have your Accountant address this before you present your Tax Calculation and Tax Year Overview to the Lender.
Your figures must be recent
You may need up to three years figures (depending on your Lender) with the most recent set no more than 18 months old.
You may also need to provide signed business accounts
Some Lenders will also ask for signed business accounts in addition to your tax calculations and tax year overviews.