The latest guidance on COVID-19 for small businesses

Latest Government Guidance

Attached is the latest government guidance which includes the information we have on;

https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19/support-for-those-affected-by-covid-19

https://www.gov.uk/government/topical-events/coronavirus-covid-19-uk-government-response

 

SA302 Forms & Applying For a Mortgage

If you want to apply for a mortgage and you have income in the form of dividends, or you are self-employed, for many years mortgage lenders have requested copies of SA302 forms. These forms were provided by HMRC showing a breakdown of income and the tax paid in each tax year.

HMRC has stopped providing these forms from 5 September 2017. HMRC has said for some time that many mortgage providers should be accepting tax overviews* but we have often continued to request SA302 forms, as we know that some mortgage lenders will not accept tax overviews.

*A tax overview is taken directly from the HMRC website and shows the tax liability in each tax year and the payments towards each liability. 

Now HMRC have stopped providing the SA302 forms, they have published a list of lenders who will accept a tax overview here. We can provide this tax overview breakdown to clients if you are applying for a mortgage.

Court case update – mortgage interest relief

A group of landlords have lost their High Court attempt to force a judicial review of legislation to reduce tax relief on buy-to-let interest payments starting in April 2017. The groups hearing took place yesterday at the royal court of justice, London.

The group named the new measure on restricting mortgage interest relief the “tenant tax” and claim that tenants will see rent increases as a result.

The group argued that as the legislation applies to individuals and not corporate landlords, it is unlawful as it could result in a grant of state aid to corporate landlords.

This loss signals the end of the legal route but the group intend to continue their campaign to put pressure on MPs to amend tax policy.