HMRC has improved self assessment documentation in relation to mortgages.
HMRC has stated that it has ‘been working with the Council of Mortgage Lenders on improving some self assessment (SA) online documentation, so that it can be considered as evidence of income declared to HMRC and to meet the Financial Conduct Authority (FCA) challenge over the robustness of the tax calculation’.
It states that the ‘online documents that have been improved are:
the “tax calculation” which shows the breakdown of the income returned on the customers tax return, including commercial versions and
the “tax year overview” which confirms the tax due from the return submitted to HMRC and shows any payments made, cross referencing the tax calculation with HMRC records.’
It has also agreed the following new process:
lenders will ask customers to provide both these documents
practitioners or taxpayers will need to be registered for HMRC’s online service
documents will be available from the SA online account but if a practitioner uses commercial software they will need to print the tax calculation.
Practitioners may also wish to continue to use an appropriate disclaimer on information supplied to mortgage lenders. Please contact Technical Advisory for suggested wording that you can tailor to a specific request from a lender or client.