Self Employed Income (including Director/Owners of Limited Companies)

Remember, we are here to help you. There are several ways a lender might assess your income. The more documentation you can provide, the wider the choice of mortgage options we can consider for you.

If you have the latest three years’ worth of figures that is great but if not, don’t worry – we have access to lenders that will accept two or even one years’ trading figures. In all cases, lenders usually require that your latest figures are no more than 18 months old.

Documents required to prove income

To assess income lenders might use figures from HMRC, figures produced by an accountant - or both.

a) Figures from HMRC

The Self Employed, including directors of their own Company, are required to submit tax returns. HMRC then provides two crucial documents for each relevant tax year:

Tax Calculation (SA302): A summary of all income reported to HMRC and the tax due for that year.
Tax Year Overview: This document verifies that the SA302 information is correct and confirms the status of any tax owed or refunded.

If you submitted online self-assessments, you can download these documents from your HMRC online services account. If your accountant submits your self-assesements, speak to them.

Guide to obtaining Tax Calculations and Tax Year Overviews from HMRC online.

Login to online.hmrc.gov.uk.
Select “Self-Assessment” (If you are only registered for Self-Assessment this will automatically be done).
Select “More details about your Self Assessment returns and payments”.

b) Figures from Accountant

For directors of their own company, get the full company accounts from the accountant.

Also, ask your accountant what professional body they are a member of (i.e. Is the accountant a Chartered or Certified accountant?) as the lender will want to know this.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages such as commercial BTLs are not regulated by the FCA.

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