Will revised tax assessment from HMRC affect mortgage application

egoode

I'm self employed and recently had a letter from HMRC that they have reassessed a tax return from 4 years ago and they believe I now owe an additional £11k in tax. I'm also currently looking to buy a place and was wondering if I put an offer in will this affect my mortgage application?

I'm appealing the decision as the information they are using is based on what I initially submitted (there's no new information) they have just decided to treat the information differently to how they did 4 years ago, my accountants also believe HMRC can't do this and they are just trying it on a bit. However I wasn't sure if this information will be available to the mortgage lenders when they assess my application and that it may cause problems when I try to buy a place. The actual amount isn't a major issue as I do have the cash available (separate to my deposit) but it will wipe out all of my 'rainy day' savings and mean I won't have any furniture for a while!

olly300

For self-employed people mortgage providers want 3 years of accounts.

egoode

I have 3 years of accounts but this is a personal self assessment tax return they are questioning not my business accounts. I guess they won't know about it unless I don't pay (if the appeal fails) and it shows up on my credit record. I just wasn't sure if there is some other way they might find out about it.

egoode

BTW should add if my appeal does fail I will be paying the outstanding tax!

Let_Us_See

I have never seen an application form that refers to possible past tax liabilities. As already pointed out lenders requirements from one to three years accounts and/or SA302s which you can provide. Besides, HMRC might eventually agree your return was in fact correct and consequently this should not be a bar in meeting your mortgage requirements.

egoode

Thanks 'Let Us See' as a FTB I'm a bit new to all this and didn't want to put my search on hold while this was being sorted out as it is likely to take months.