Tax overview

Car1980

Am self employed and now had a request for a tax overview form from HMRC for a DIP.

It shows my 4.5k tax bill for this year as unpaid, but I'm planning on settling it with the equity from my sale.

Or would it be worth getting it shown as 'paid' at any cost e.g. parent will pay it?

amnblog

You will probably find the Lender will want evidence that any tax due is paid.


If the tax year in question is 2013/2014 it should definitely be paid.


Speak to your broker.

Car1980

Ok, all sorted now.

Broker didn't see it as a game changer, but need to get them off my back anyway!

Dave_Ham

Woolwich mortgage??

ACG

I have just had something similr with nationwide.

Dave_Ham

The FCA have "suggested" lenders should review this document as part of ongoing diligence.

Not all lenders are straight on it and it is always combined with SA302's to give a fuller picture.

I think we all knew SA302's alone was never going to be the long term requirement for evidencing self employed income, although will see how this is transacted by lenders.

kingstreet

Not yet come across this.

Are we saying lenders are insisting people pay their tax earlier than they might wish, as a consequence or requirement of applying for a mortgage?

Or is this about ensuring overdue tax is paid?

Dave_Ham

I think it is a combination, with the bigger issues being people reducing their income post mortgage completion but before January..

kingstreet

Ah, so an early SA302 effectively obtained under false pretences, then the online return later amended to reduce income/tax?

Dave_Ham

I am presuming so, although nothing to confirm that is the reason..

amnblog

Woolwich have started requesting the online tax overview for the most recent year. They tells us in order to confirm tax has been paid.

I suspect they have not thought out what happens if a client submits a 14/15 return today and won't need to make a payment until July.

One of these days they will ask the broker population before they change criteria without thinking it through.