In the UK, a tax calculation and tax year overview are documents provided by HM Revenue and Customs (HMRC) that summarise your income, tax deductions, and tax liability for a specific tax year. These documents are important for understanding how much tax you owe, or how much you may be entitled to be refunded, and they're routinely requested by mortgage lenders when assessing self-employed applicants.
- Tax calculation (also known as an SA302). A tax calculation is a statement sent by HMRC after the end of the tax year. It outlines the tax you have paid and compares it with the amount you should have paid based on the information available to HMRC. The calculation takes into account factors such as employment income, pension income, tax allowances, deductions and credits. It will indicate whether you have underpaid or overpaid tax during the year, and explain any adjustments made to correct discrepancies. To download a copy, log in to your HMRC account and go to 'Self Assessment', then 'More Self Assessment details'.
- Tax year overview. The tax year overview is a summary of your income and tax details for a specific tax year. It shows the total income you've received from various sources, employment, pensions, benefits, savings, alongside the tax deducted. It provides a snapshot of your tax affairs for the year and can be used for reference and record-keeping. It is less detailed than a tax calculation but offers a useful overview of your position.
Both documents are essential for understanding your tax position, especially if you believe there may be discrepancies or you need to reconcile your tax payments. If you have any concerns or questions about your tax calculation or tax year overview, it's worth contacting HMRC directly or seeking guidance from a tax professional.