Tax & Admin

What Is An SA302 Tax Calculation?

Allison S Robinson | 28 April 2022 | 2 years ago

What Is An SA302 Tax Calculation

An SA302 calculation is an official HMRC document that confirms an individual’s income for up to the last four years. The document can be found online via your government gateway login, delivered by post if calling HMRC or downloaded from any third party accounting software used to submit a tax return online.

You may be asked to provide proof of earnings by showing your SA302 calculation if you are self-employed, a company director or have to submit a self-assessment tax return to declare any other non PAYE income such as interest on savings, foreign investments, UK property, pensions and benefits, dividends or shares owned. The SA302 document is commonly requested by lenders when applying for a mortgage or a business loan as they will need to see proof of earnings.

Read on to find out everything you need to know about an SA302 calculation including when you need one, where to find it and what the calculation shows. 

What Is An SA302?

An SA302 is a document provided by HMRC that sets out any income that you have received outside of PAYE employment in any given tax year along with the tax payments owed as a result. It can also be called a ‘Tax Calculation’ and relates to a tax year which runs from 6 April to 5 April the following year. HM Revenue and Customs (HMRC) is the UK government department responsible for the collection of taxes.

Anybody that submits a self-assessment tax return to declare their untaxed earnings from self-employment, UK land and property, dividends, pension earnings, interest savings and foreign income. Following submission, they can request an SA302 for up to four tax years to show all income received and tax paid. The form is available 72 hours after submitting your self-assessment tax return and can be accessed online using your government gateway login credentials or in paper form by calling HMRC.

When Do You Need An SA302?

HMRC SA302 webpage

You are likely to need to provide a copy of your SA302 calculation when applying for large amounts of credit from lenders, for example when applying for a mortgage or a business loan.

When requesting a loan of any kind, the lender considering your application will need to assess your ability to repay the loan within the time frame agreed. To do this they will carry out due diligence checks that include reviewing your income and expenditure to ensure that you can meet the repayment terms required.

Employed individuals can easily supply this information in the form of payslips and a P60 document issued by their employer.

If however you are solely self-employed or receive income from other means such as interest on savings, then your income may fluctuate and you won’t have wage slips to prove where your earnings have come from. The SA302 document shows exactly what income you have declared, and is broken down into its various sources such as PAYE earnings, self-employment, interest or property for example. It, therefore, provides the proof of income required by lenders.

Depending on the size of the loan requested, you may be asked to provide proof of several years’ earnings for which you will need to submit multiple SA302 calculations, each relating to a tax year.

Where To Find Your SA302

Everybody that submits a self-assessment tax return will have an SA302 generated within 72 hours of it being received by HMRC and it can be used to prove the income received for the corresponding tax year. Unless you’ve been asked to provide a copy of this document to prove your earnings, it’s quite likely that you have never heard of it or know where to find it.

To find your SA302 calculation document you will either need to access HMRC’s online service portal, third party commercial software or by phoning HMRC. The method applicable to you will depend on how you submitted your self-assessment for the year that you need to provide proof of income.

Previously an SA302 would have been sent out by post automatically to anybody that has submitted a self-assessment tax return but now, you must access them online or request for a copy to be sent out by post.

When To Call HMRC

If you submitted a paper tax return you will need to call HMRC by phoning 0300 200 3310 to get a copy of your SA302 which will be sent to you by post. Make sure that you have your unique taxpayer reference number (UTR) and your National Insurance Number so that they can confirm your identity before actioning your request. You should then allow up to two weeks for it to arrive in the post.

When To Use Third-Party Software

If you are self-employed or run a limited company or partnership, then you or your accountant may use commercial software to manage your accounting needs online. Many of these programs include an option to link your accounting software to your tax return to make tax digital. If you have used small business accounting software to help submit your tax return, then, you can find your SA302 by accessing the tax breakdown dashboard within it. If you have trouble finding it, you can contact the company that makes the software for support in finding the calculator.

Be aware that different accounting software providers may offer the option to manage your tax affairs as an additional paid option meaning it won’t be available for basic account users.

When To Use HMRC’s Online Portal 

If you have a government gateway login and use HMRC online to file your self-assessment tax return then you can find your SA302 calculation by:

  • Log in to your HMRC account: access.service.gov.uk/login/
  • Click on ‘Self Assessment’
  • Click ‘More Self Assessment Details’ under the ‘Your Balance’ Heading
  • Choose ‘Get your SA302 tax calculation’
  • Select the option to print your tax calculation and tax overview
  • From here you can download and print your SA302.
  • NB: If you need an SA302 for a different tax year to the current year, you will need to click ‘Tax Return Options’ in the menu and select the relevant year. Up to Four years are available to view online.

What Does The Document Include?

An SA302 tax calculation is supplied in PDF format and shows the following information:

In the top right-hand corner, your unique taxpayer reference number is shown along with the status of the tax return relating to the year the SA302 is for. For example, 100% complete.

The first main section details the sources of income from the following sources and any income tax owed for the tax year shown:

  • any PAYE income receive from employment in the tax year shown
  • self-employment in the tax year shown
  • UK land and property
  • overseas investments
  • interest on savings
  • shares owned
  • dividends from companies
  • UK pension and benefits
The next section explains how the tax owed for the tax year shown has been worked out by HMRC. This includes a total sum of your income from all sources, a deduction of your personal allowance and a breakdown of tax due including national insurance class 2 and 4, and the amount of income tax due.

The final part of the SA302 document shows a summary of when the income tax payments are due to be paid. Self-assessment tax payments are usually spread over two payment dates unless the amount of tax owed is under £1000.

Who Must Submit A Tax Return?

Tax year 2020-21 shown on desk with calculator and pen

SA302 calculations are only available to individuals that submit a tax return but who does this apply to?

You must submit a tax return if you were:

  • self-employed as a sole trader and earned more than the £1,000 before expenses
  • if you were a partner in a business partnership.
  • if you received any other sources of untaxed income such as rental payments for property that you rent out, commission, interest from savings, investments and dividends, or foreign income.
If you only work for one or more employers and receive your wages and pension payments due via PAYE, then you do not need to submit a tax return

If you receive both PAYE income from an employer and also work on a self-employed basis in your spare time, then you will need to submit a tax return if your self-employment income exceeds £1,000.

What Is The Difference Between An SA100 and an SA302?

An SA100 is the official document name for the main self-assessment tax return form submitted by anyone that needs to declare their untaxed income to HMRC.

An SA302 is the official document issued by HMRC to show a summary of income received in any given tax year and can be used as proof of earnings for anyone required to submit a self-assessment tax return.

What Is The Difference Between An SA302 And A Tax Year Overview?

HMRC issues several documents to UK taxpayers following the submission of a self-assessment tax return. Each document contains slightly different information and has different uses.

The summary below should clear up any confusion between an SA302 and tax year overview documents.

  • An SA302 is a summary of any income that has been reported to HMRC in a given tax year along with the amount of tax owed. The document is effectively a certificate that documents exactly how much income you have declared which can be useful in situations where you need to provide proof of income but don’t have wage slips or a P60 from regular employment.
  • A Tax Year Overview is a separate document issued by HMRC and it verifies that the SA302 information is correct. A tax year overview is produced by HMRC once you have submitted your self-assessment tax return and is a statement of your tax bill for the tax year in question. It shows the tax due, the tax paid, if any tax is outstanding or if any refund is due for the given tax year.

Summary

If you have been asked to provide an SA302 document or tax calculation, you will likely have been asked to provide proof of earnings that cannot be shown from usual sources such as wage slips or P60s issued by an employer. This is common when self-employed people or anyone who receives income from sources other than PAYE approaches a lender for finance, such as for a business loan or mortgage application but you may be wondering what an SA302 tax calculation is.

Self-employed people or anyone that is required to declare income from other sources other than PAYE employment, such as UK property investments, pension or benefits, dividend payments, shares owned, foreign investments and savings interests, are required to submit a self-assessment tax return each year to calculate and pay the tax owed on this income.

Following submission of a tax return, HMRC issues an SA302 document which is also called a tax calculation. This acts as an official certificate that shows proof of earnings submitted to HMRC via the tax return and any tax owed for any given tax year which runs from 6th April to 5th April the following year. The SA302 can be sent to anyone that requires proof of earnings such as lenders.

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