With the 31st of January fast approaching, self-employed individuals across the UK are racing to meet the self-assessment tax return deadline. At Best Mortgage Group, we understand that juggling your finances and tax deadlines can feel like a bit of a headache. But trust us—getting it sorted on time is not just about ticking a box for HMRC. It’s also essential for your mortgage plans.
Here’s why getting your self-assessment done on time matters, especially if you’re self-employed and thinking about buying a home.
Why Does the Self-Assessment Deadline Matter for Mortgages?
- Proof of Income for Lenders
When you’re self-employed, your income isn’t as straightforward as a monthly payslip. That’s why mortgage lenders rely on your self-assessment tax return to confirm your earnings. Submitting it on time means you’ll have your SA302 forms and tax year overviews ready to go when the bank asks for proof of income. - Avoiding Fines
Let’s be honest—nobody wants an unexpected bill from HMRC. If you miss the deadline, fines start at £100 and go up the longer you leave it. Not only can this add stress to your finances, but lenders might also take a dim view of late penalties when they assess your reliability. - Shows You’re Financially On Top of Things
Submitting your tax return on time isn’t just about avoiding fines—it’s about showing lenders you’re in control of your finances. A well-organised borrower is exactly what lenders want to see, especially when self-employed income can sometimes look a bit more complex on paper.
How Late Tax Returns Can Delay Your Mortgage Plans
Most lenders want to see two to three years of tax returns to get a clear picture of your earnings. If your latest return is missing because of a late submission, it could slow down your mortgage application or even lead to it being declined.
And let’s face it, that’s the last thing you need when you’re trying to get your dream home.
Top Tips for Self-Employed Mortgage Applicants
- Stay Organised: Keep your financial records neat and up-to-date all year round. It’ll make filing your self-assessment much easier.
- Work with a Professional: A good accountant can be a lifesaver, ensuring your tax return is accurate and ready on time.
- Plan Ahead: If a mortgage is on your radar, make sure you’ve got all the documents lenders will ask for, including those all-important tax returns.
We’re Here to Help
At Best Mortgage Group, we know the self-employed route isn’t always straightforward, but that’s where we come in. Our friendly team has years of experience helping people just like you navigate the mortgage process.
If you’re self-employed and thinking about a mortgage, don’t let the self-assessment deadline hold you back. Get your return done, and then let us help you take the next step towards your new home.
Give us a call or book a time to suit you
Don’t miss the deadline—your future self (and your dream home) will thank you!