A form SA302 is basically a tax calculation based on the figures entered on your self-assessment tax return. As the calculation is based on the figures, you need to amend any data that might be incorrect, or you may find that you pay either too much or too little tax for the year.
When do you receive form SA302?
A paper copy of the form SA302 will be sent to you by HMRC if a paper tax return has been submitted before the filing deadline and you have requested that your tax is calculated by HMRC. If you have submitted a tax return and HMRC disagrees with your calculations, a form SA302 will be issued. If you realise that figures on the tax return may be incorrect, you can make amendments to the tax return which will result in a form SA302 being issued.
If you file your tax return online, you won’t receive a paper copy of the SA302, but will be able to view the tax calculation online.
When you may need a copy of the SA302
If you apply for a mortgage or other loan, the lender may ask to see form SA302 as proof of your income when self-employed. If you haven’t been sent a paper copy, you can print the online copy of the tax calculation yourself.
The covering letter
Each form SA302 issued to you will be accompanied by a covering letter. This will provide information including the relevant tax year, any amendments that have been made to your tax return figures, any payments on account due to be paid and the total amount of tax payable.
What is on the SA302?
The tax calculation will display your total gross income for the year before any tax has been deducted. The taxable amount of income will also be shown, which is the gross income less any deductions or personal allowances that are due. The tax rate will be shown on the calculation and this will depend on the amount of income you receive. Any tax that you have already paid will be deducted from the total amount of tax due and you will be expected to pay the remainder.
As with all tax matters, it’s vital to stay on the ball. Be sure to check the figures on the tax calculation carefully, as this could affect the amount of tax you pay.
Want to learn more?
Subscribe to our newsletter to get accounting tips like this right to your inbox
About The Author
We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!