Self-employed borrowers (including company directors) must have been conducting their business for a period of at least 2 years and be able to provide evidence of income for that period, together with a projection/estimate of income for the coming 12 months
Required documentation for self-employed applicant’s (including company directors)
- A completed Accountant’s Certificate covering at least the most recent 3 completed years, and obtained from an approved accountant, will be accepted for borrowers who are self-employed.
- If it’s not possible to obtain an Accountant’s Certificate at least the last 3 years’ signed accounts should be obtained.
- If the applicant submits a self-assessment return to HMRC, copies of the last 3 tax calculation forms (SA302) issued by HMRC should be obtained. However as SA302s are in effect self-certification and no checks are carried out by HMRC, additional comfort must be obtained. This may take the form of confirmation of tax paid in previous years via the relevant HMRC Overview sheet, bank statements or contracts.
- Projections/estimates should be obtained if 3 years income cannot be confirmed. The business must have been trading for at least two years with the results confirmed by the accountant with an estimate/projection provided for the third year.