Mortgage in principle without sa302

jaydeeuk1

Met with an independent mortgage advisor yesterday to look at getting a mortgage in principle. I'm a 25% shareholder in a ltd company, have 3 years worth of accounts. Because my salary and dividend income wasn't within higher tax threshold, I haven't registered for self assessment until this week when the 14/15 accounts were sorted.
So therefore, no self assessment, no sa302.

Mortgage advisor did a few sums and on natwest and barclays I could get the mortgage I wanted, but was told today to get an offer in principle I need to provide either self assessment forms or sa302 which obviously I don't have. I've emailed my accountant to see what could be used instead, but I pay him so much he's !!!!ed off to spain for a couple of weeks. My advisor is working through each lender in order of best deal but surely my payslips and bank accounts for last 2 years show what is going in!?

Apparently a p60 and dividend vouchers isn't enough.


Wife now depressed as we'll probably miss out on the house we put a notice of interest in on, and our house will sell easily

ACG

SA302s are the easiest route, but there could be ways around it without them. Payslips/P60 will only evidence your PAYE income and not your dividends so unless you can afford it on your PAYE income alone that will not do the job I do not think.

jaydeeuk1

Yeah thats what I'm thinking. However natwest and barclays- the 2 lenders that can offer the best deals will only accept sa302 for directors, no exceptions. It also seems that most lenders take an average of last 2 years incomes, wife was a SAHM and then employed from July 2015), so I probably can't just bump mine and wifes salary up either (she's employed on my company books on £15k to use up her tax free allowance and keep me out of HR tax bracket).

Thrugelmir

jaydeeuk1 wrote: »

Apparently a p60 and dividend vouchers isn't enough.

Doesn't sound if you are self employed either. So why the need to register for self assessment?

ACG

Dont take this the wrong way, but the rates can be whatever they like. If you are not eligible for them they are worthless.

amnblog

Your broker does not sound very experienced.

Some Accountants believe that self assessment returns are necessary even if there is no personal income tax to pay. Your Accountant is with the group that believe self assessment returns are not necessary.

You may have some options as there are still lenders that will work from an Accountants reference.

star02

Are you a statutory director? If so you would still be required to complete a tax return even if you only have dividends within your basic rate band. This might be why insisting on SA302s


https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

amnblog

About as clear as I have seen HMRC lay it out, but many Accountants don't do the returns.

jaydeeuk1

Yes I'm a director, listed at companies house, but ive not read anywhere in law that required me to register for SA simply for being a director when my only income is from my company and still in the 20% bracket.

Will see what happens next week.

csgohan4

jaydeeuk1 wrote: »

Yes I'm a director, listed at companies house, but ive not read anywhere in law that required me to register for SA simply for being a director when my only income is from my company and still in the 20% bracket.

Will see what happens next week.

hmm, Director you need to fill in a self assessment.


HMRC quite clear on this:


https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return


it's tax law, if your filling it in late you might have penalties. Ignorance is not an excuse. You must have due diligence on your own tax affairs.

jaydeeuk1

csgohan4 wrote: »

hmm, Director you need to fill in a self assessment.


HMRC quite clear on this:


https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return


it's tax law, if your filling it in late you might have penalties. Ignorance is not an excuse. You must have due diligence on your own tax affairs.

Your post seems to go against plenty of the others on the internet that says they have no legal powers to force a director to be self assessed if they have 0 tax liability and haven't been asked by hmrc to send one in.