Tax Calculations and Tax Year Overviews for Self Employed Mortgages

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A lot has changed in this area in recent years – here is the up to date information for 2019

To prove your income for a mortgage application as a self employed person you will require:

A Tax Calculation covering the requested tax year(s)

and

A Tax Year Overview to accompany each Tax Calculation

Tax Calculation

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:

Your Accountant

Who will typically provide this printed from commercial tax calculator software

view an example of an Accountant produced Tax Calculation here

Your HMRC Online account (Gateway)

Which can be accessed by your Accountant or by yourself (if you have the log ins)

view an example of an HMRC produced Tax Calculation here

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) – guide to downloading your Tax Calculation and Tax Year Overview

view an example of a Tax Year Overview here

The 7 minute mortgage
It takes just 7 minutes to complete our secure online mortgage request form

Further key 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 less 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.

Tax Calculation Example (from Accountant)

Tax Calculations from Accountant example

Tax Calculation Example (from HMRC)


Tax Calculations from HMRC example

Tax Year Overview Example


Tax Year Overview Example

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