Sa302 vs net profit sole trader

BIGDSUMMER

Hi applied for a mortgage in principle with woolwich (barclays)
joint application i am a sole trader

For myself They require SA302 as well a net profit figures from my accountant which is fine and i have.

However for the last 2 years which they require the SA302 for both years these are around £4500 lower than my net figures due to tax and capital allowances i presume !!...
Is this normal for sole traders or will the underwriters not like this

Thank you for very much for any advice ( edit just to add on the mip process net profit figures were asked)

kingstreet

For a sole trader, the two figures should be the same.

"Net" profit is turnover less capital allowances and before personal allowance, tax and national insurance.

IIRC the figure is what is entered in box 30 on the self-employed section of an SA Online tax return.

The only time they would be different is if you have a year-end which does not match the fiscal year-end on 5 April each year. Then there may be an element of lag between the accounts and the SA302s.

BIGDSUMMER

Thanks
I shall get on to my accountant then as these figures are not the same and i am running in sync with my tax years.
the net profit figure i have been given is quite different to the profit from self employment figure stated on an SA302 so i shall chase him on this as this is clearly going to affect my application then.

amnblog

Barclays normally ask for SA302s or HMRC tax overviews.

BIGDSUMMER

Hi yes those were my options
what is a HMRC TAX overview and what info will it have on it..

Thank you for your reply

BIGDSUMMER

Just been searching the net trying to figure out the difference in regard to the HMRC tax overview and the SA302 forms as this was the choice given to me for proof of income along side the signed accounts from my accountant and not really understanding what the HMRC overview is and what info it will show to the provider so if any one could advise that would be fantastic thank you ..

deaston

BIGDSUMMER wrote: »

Hi yes those were my options
what is a HMRC TAX overview and what info will it have on it..

Thank you for your reply

Just been through all this with Halifax. They wanted SA302s and the covering letter from HMRC. In addition they wanted the corresponding 'online tax overviews' which you can download off the HMRC website. Apprently they prove that you actually paid the tax the SA302 says you owe.

minimike2

amnblog wrote: »

Barclays normally ask for SA302s or HMRC tax overviews.

It is both of these for the latest two years for a sole trader. SA302 can be replaced with tax calculations.

amnblog

Yes Mike a misstype.


SA302s are normally asked for to cover 2 years, these can be replaced by HMRC Tax Calculations.


HMRC Tax Year Overview is requested for latest year and can be replaced by Accounts.


Previous years TAX Year Overview is also requested.


If they wanted to make it more complex I am not sure where they would start!

BIGDSUMMER

Yes thank you for your reply I was given the option of tax calculations but what are these and what info do they show