Credit Score Basics > What is the SA302 form and how to use it?

What is the SA302 form and how to use it?

Wollit Team2 minute read · Updated 11th August 2024

The SA302 form, also called a “tax calculation summary”, is a document issued by HM Revenue and Customs (HMRC) that shows your income as you reported it through your Self Assessment tax return.

Why is the SA302 important?

The SA302 is so important because it serves as an official proof of earnings, especially if you’re self-employed or earning income outside of the Pay As You Earn (PAYE) system.

Lenders often ask for this document to assess your creditworthiness and ability to repay loans or mortgages. They also trust the information in it because it comes straight from the HMRC – which you presumably wouldn’t provide inaccurate information to.

Who needs an SA302 form?

The SA302 form is primarily for self-employed individuals, sole traders, and anyone who completes a Self Assessment tax return. This includes those with rental income or other sources of income outside of PAYE.

How often should I get an SA302?

You should get a new SA302 form each year, after submitting your Self Assessment tax return. This way you’ll have the most up-to-date proof of income when applying for loans or mortgages.

How to apply for an SA302 form

Getting an SA302 form is pretty simple, especially if you have already completed your Self Assessment tax return.

There are three ways you can get one:

1. Online through HMRC. If you file your Self Assessment tax return online, you can download your SA302 directly from your HMRC account. After logging in, navigate to the “Self Assessment” section, select “More Self Assessment Details”, and then click on “Get Your SA302 Tax Calculation”. Keep in mind that you’ll need to wait for at least 72 hours after submitting your tax return.
2. If you prefer not to use HMRC online, you can also ask for a printed copy of your SA302 from HMRC by phone. Be prepared to give them your National Insurance number and Self Assessment Unique Taxpayer Reference (also called “UTR number”) for verification. You’ll also need to wait up to two weeks for the document to arrive by post.
3. Through an accountant. If you use an accountant for your tax returns, they can also generate the SA302 for you. This method might be the best, as they can also certify the document, giving extra reassurance to the lenders.

How does the information in an SA302 form affect my loan applications?

When applying for a loan or mortgage, lenders need to verify your income so they can calculate how much you are able to repay. This is where the SA302 form comes in.

However, income is not the only thing lenders look at – they also need to see your credit history, to understand if you are a reliable borrower. This is why it’s so important to work on your credit score.

Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies. This helps you build your credit history and directly influences your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders that you’re reliable and pay your bills on time, helping you make the most of your rent while you prepare to become a homeowner.

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