So, you’re self-employed and thinking about buying a home? Brilliant! But if you’ve already Googled “self-employed mortgage”, you might have seen words like SA302, tax year overview, and certified accounts flying around. Don’t worry – I’m going to break it all down for you in plain English.
Whether you’re a sole trader or run your own limited company, the process is absolutely doable – you just need to know what lenders look for and have your paperwork ready.
Sole Trader vs Limited Company Director – What’s the difference for mortgages?
- Sole Trader
If you’re a sole trader, lenders will look at your personal income—basically your profits after expenses. They’ll usually average your income over the last two or three years using your tax returns, this means what you have declared to HMRC not what gets paid into your bank account. - Limited Company Director
If you run a limited company, lenders often look at your salary plus dividends. Some will even consider your share of retained profits in the business, which can be handy if you leave money in the company for tax reasons.
The key takeaway? Both setups can work for a mortgage, but the way your income is assessed is different. So, if you’re thinking of switching from sole trader to limited company, keep in mind that lenders will want to see a clear history of earnings.
What documents do you need?
Here’s the usual checklist:
- Proof of ID and Address – Passport or driving licence, plus a recent utility bill or bank statement.
- Tax Documents –
- SA302s (tax calculations from HMRC)
- Tax Year Overviews (to show your tax is paid)
Most lenders want the last two years, but some will accept one year.
- Business Accounts – If you’re a limited company director, you’ll need full accounts signed by an accountant.
- Bank Statements – Usually the last 3–6 months for both personal and business accounts.
Tip: You can download SA302s and overviews from your HMRC Government Gateway online account. If you’re not sure how, your accountant can help.
How long are these documents valid?
Most lenders want documents that are less than 18 months old. So, if you’re applying in January 2025, your latest tax return (for the year ending April 2024) will usually be fine until 5th October 2025. After that, they’ll expect the next set.
When does the tax year start and end?
The UK tax year runs from 6 April to 5 April the following year. So:
- 2024/25 tax year: 6 April 2024 – 5 April 2025
- 2025/26 tax year: 6 April 2025 – 5 April 2026
This matters because your SA302s and overviews are based on these dates.
When is tax due?
- 31 January – Deadline for filing your online tax return and paying any tax you owe for the previous tax year.
- 31 July – If you make payments on account, this is when the second instalment is due.
- 5 October – If you’re newly self-employed, register for self-assessment by this date.
Even though your tax return deadline is 31st January you can still submit your return to HMRC any date from the 6th April of the previous year meaning you have 9 months to pay your tax.
Miss these deadlines and HMRC will slap on penalties—so set reminders!
Final thoughts
Getting a mortgage when you’re self-employed isn’t harder—it’s just different. The trick is being organised and showing lenders that your income is stable. If you’ve got your documents ready and know your numbers, you’re halfway there.
Need help? That’s what I’m here for! Drop me a message and we’ll chat through your options.
Emma