Self Assessment for Company Directors

[chasingunicorns]

I have a nice little conundrum here for those who would pit their wits against petty beaurocracy. Although HMRC state that company directors must fill in a tax SA, according to TMA 1970, there is no such specific requirement: "There is no requirement to notify chargeability where there is no liability to Income Tax or Capital Gains Tax or where sufficient tax has been deducted at source to meet the net liability for the year" This is the case for me. Consequently, no SA302 has been issued to me (obviously). Here comes the beaurocracy nonsense. I have applied for a buy-to-let mortgage through a bank (which, for now, will remain nameless). They INSIST on SA302's for the last two years. Well, I haven't submitted a SA for that period so there are no SA302's to be had. Does anyone have any suggestions as to how I can persuade these ill-informed people that they are using incorrect criteria for their eligibility assessements.?

 

[teddys]

Not too sure how these are connected:

1. The lender needs to see income, and SA302 is one of the ways in which they would assess your income level, which obviously determines your repayment capacity. You need regular flow of income to make periodic repayments. The fact that you're an entrepreneurial person or that you have equity stake in a company or have assets, does not necessarily result in regular disposable cash.

2.The TMA reference is purely technical - merely being a director does not create an obligation on you to notify HMRC of chargeability.

I'm not a financial adviser, but thought you could try the following:

1. Show them your company's financial statements to prove that there is indeed sufficient income available for distribution if required

2. Show them your personal bank statements.

 

[tony84]

Lenders are not using incorrect criteria... its THEIR criteria.

Anyone can get books cooked by an accountant, a lenders way to avoid this is to request SA302's.

Have you gone via a broker? Did they not check you met the lenders criteria before making an application if you did?
Whos the lender?

 

[tony84]

Ive just had a quick look on the system we use, there are lenders who do not require SA302's. Most BTL mortgages are only available via a broker, if you have not gone through a broker, it might be worth speaking to one as this should be possible.

 

[Ola1]

As an alternative, lenders will often accept accounts certified by an accountant holding a CCAB qualification.

But this depends on the lender, and their staff are obligated to follow their employers mandated procedure.