Acceptable income verification documents
We require the latest year’s income evidence to be for the 2020/21 tax year on all cases except for Directors of a Limited Company with a shareholding ≥25%, or in receipt of dividends as part of their remuneration package. For Directors of a Limited Company where the trading year differs from the tax year, we will accept income evidence with a latest trading year end date up to 15 months before the date of the application.
Tax Calculations and Corresponding Tax Year Overviews
For sole traders and partnerships we will always request the latest 2 years tax calculations with corresponding tax year overviews as the preferred method of income verification (latest year must be 2020/21 tax year). We will not accept them for Limited Companies as they do not show if the dividends are covered by the net profit after corporation tax and will therefore require an accountant's reference instead (further details under Accountant's Reference below).
TSB accept Tax Calculations in the following formats:
- HMRC Online Tax Calculations
- Tax Calculations produced using commercial software
All versions of Tax Calculations and Tax Year Overviews must contain:
- All pages of the documents
- Applicant’s name (surname and initial)
- The unique Tax Reference Number
- The tax year
In addition to the above, the following information must also be contained in the relevant document:
- SA302's: must be on headed paper
- HMRC Online Tax Calculation: must contain the HMRC logo and show the status bar confirming 100% complete
- Tax Year Overview: must contain the HMRC logo, the amount of tax due and the statement - "This is a copy of the information held on your official online self-assessment tax account with the HMRC" (for online versions only).
An Accountant's Reference is the required method of verification for Limited Company Directors. The reference must be fully completed and signed and dated by a suitably qualified accountant, and must have either a practice stamp, or be accompanied by a sheet of the company’s headed paper. If dividends exceed their share of net profit, then affordability will be based on the lower figure (director’s salary and share of net profit) and will be referred to underwriting for manual assessment.
If the income for the latest year has reduced or is projected to reduce in the current year, we will need the accountant to provide a projection so sustainability of income to support lending can be considered.