SELF-employed workers have been urged to submit their tax returns now if they are looking to move home in the coming weeks or months. From October 5, the majority of mortgage lenders will ask for 2023/24 tax returns as proof of earnings. 1 Lenders will want 2023/34 tax returns from October 5 Credit: Alamy HMRC doesn't require the 23/34 year's tax return to be submitted until the end of January 2025, meaning that many workers will not have yet completed it.
"Lenders see documentation over 18 months old as too historic to accept," said Chris Sykes, technical director at mortgage broker Private Finance. This means that anything relating to the end of the tax year April 5 2022/23 becomes out of date from October 5, Chris said self-employed borrowers get caught out by this every year as the date isn't advertised by lenders. Read more on mortgages HOUSE THAT Exact amount of time homeowners have to lock in mortgage rates early KEEP TRACK Mortgage trap that could add £4,380 a year to bills - how to avoid it He added: "This will affect any self employed borrower looking to buy their first home, move house or remortgage over the next few months.
"Unlike an employed borrower just on a salary, a new year's self employment figures can significantly change the borrowing upwards or downwards." Nicholas Mendes, technical manager at broker John Charcol agreed that this is a big issue for self-employed borrowers and they often oly become aware when starting the mortgage applicatio.