At Fox Davidson, we specialise in securing mortgages for high-net-worth individuals, professionals, and business owners across the UK. As we approach the end of 2025, self-employed applicants – including sole traders, partners, and limited company directors – face a common hurdle: demonstrating current income to lenders at a time when the latest tax return is not yet due for submission to HM Revenue & Customs (HMRC).

This article explains the current landscape, why the 2024 tax calculation is no longer sufficient, and how proactive engagement with your accountant now can significantly enhance your mortgage prospects.

The Deadline Discrepancy: HMRC vs Lender Requirements

Under HMRC rules, the self-assessment tax return for the 2024/25 tax year (6 April 2024 to 5 April 2025) is not required to be filed until 31 January 2026 for online submissions. This provides valuable breathing space for finalising accounts and ensuring accuracy.

However, UK mortgage lenders operate on a different timeline. To assess affordability, they require the most recent tax calculation – specifically, the 2024/25 SA302 or Tax Calculation – to verify income. Without it, applications risk delay or rejection, even when a strong trading history exists.

Why the 2024 Tax Calculation is Now Considered Out of Date

Lenders typically accept income evidence that is no more than 18 months old from the date of the most recent financial period. As of October 2025, the 2023/24 tax year (ending April 2024) is now over 18 months old. This means:

• The 2023/24 SA302 is no longer valid for most lenders.
• The 2024/25 tax calculation becomes the minimum requirement for any new mortgage application or remortgage.

Failure to provide the current year’s figures leaves lenders unable to proceed, regardless of prior approvals or projected earnings.

The Advantage of Early Tax Return Submission

Engaging with your accountant now to prepare and submit your 2024/25 tax return – even ahead of the January 2026 deadline – offers several strategic benefits:

1. Immediate Access to the SA302/Tax Calculation Once submitted, HMRC typically issues the official tax calculation within 72 hours. This document is lender-accepted proof of income.
2. Stronger Affordability Position A freshly submitted return reflects your most recent trading performance, which is particularly valuable if profits have increased year-on-year.
3. Avoids Delays During Peak Application Periods Submitting early prevents last-minute bottlenecks in January, when accountants are inundated and HMRC processing times may extend.
4. Enables Rate Locking and Product Selection With confirmed income in hand, you can secure the best available mortgage rates before potential increases.

Special Considerations for Limited Company Directors

Lenders assess limited company directors using one of two primary methods, depending on their policy:

Option 1: Salary + Dividends (Most Common)

• Uses the last two years’ figures from the tax calculation.
• Provides consistency and is widely accepted by high-street and specialist lenders.

Option 2: Salary + Share of Net Profit (Select Lenders)

• Some lenders will include the director’s share of net company profit in addition to salary.
• Requires full company accounts or an accountant’s certificate and often a review by the lender’s underwriting team.
• Can significantly boost borrowing capacity for profitable businesses.

Early submission of the 2024/25 return ensures both methods can be fully evaluated, allowing us to approach the most suitable lender for your circumstances.

Next Steps: Act Now to Stay Ahead

Self-employed borrowers should contact their accountant without delay to:

• Finalise 2024/25 accounts.
• Submit the tax return early.
• Obtain the HMRC-issued SA302 and Tax Year Overview.

At Fox Davidson, we recommend allowing at least 8–12 weeks before your intended mortgage application date to complete this process smoothly.

Our team of expert brokers can then:

• Review your updated tax calculations.
• Identify lenders with the most flexible income policies.
• Structure your application to maximise borrowing potential.

Fox Davidson are award-winning mortgage brokers for professionals, business owners, and complex income structures. Contact us today on 0117 403 4222 or via our contact form.