The SA302 is HMRC's tax calculation for a Self Assessment tax year: a statement of the income declared on the return, the allowances and reliefs set against it, the tax worked out at each rate and the amount due or repayable. Mortgage lenders accept it, with the Tax Year Overview, as proof of a self-employed person's income.
What it is
When a SA100 is processed HMRC produces a tax calculation showing how the bill was arrived at. Online filers see it in their HMRC online account as the Tax Calculation for the year; HMRC posts a paper SA302 to people who file on paper and to anyone who asks for one. It lists total income by type, the Personal Allowance and other deductions, the tax at the basic, higher and additional rates, the tax deducted at source and the final figure due for the year.
What it is used for
- Checking the return: it is the figure HMRC expects to be paid by 31 January and the basis of the payments on account.
- Proving income: lenders ask self-employed applicants for the SA302 for the last two or three years together with the Tax Year Overview, which confirms the tax has been paid. Most lenders accept a calculation printed from commercial software, and HMRC publishes the list of those that do.
The SA302 is the working; the SA110 is the page of the return that summarises the result.
In Tax Optimiser
Because the traditional Self Assessment channel has no HMRC calculation service, Tax Optimiser calculates the tax itself, live as the return is entered. The Calculation section shows the SA302-style working with every band and credit, and Download SA302 PDF produces it as a document for the client. Once the return is accepted, HMRC’s own calculation appears in the client’s online account in the usual way.
Read more: reading the Self Assessment calculation.
