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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I'm trying to apply mortgage and the lender requires

Customer Question

Hello, I'm trying to apply for a mortgage and the lender requires proof of income. As I receive tax credits, they want a copy of my awards letter. However, for the current tax year my renewal was an auto-renewal and I didn't receive a letter of award. I received a letter stating my finalised entitlement for FY14/15 and a statement along the lines of 'if your income remains the same, your tax credits for FY 15/16 will be X'. The lender states this isn't adequate and that I need to supply a letter of award but HMRC states that they cannot provide me with a letter of award, or even a letter explaining why not/what their procedure is to the lender. I don't know what to do! Have tried a Google search to try to find an HMRC document that states in black and white that they don't issue awards letters to claimants on auto-renewal, but I can't find anything. Please may I have some help and/or advice?
Many thanks,
Jo P
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. It's ludicrous that you cannot get a letter from the TCO confirming your award given that you need it for your mortgage application. HMRC do issue written confirmation of income reported to them in a tax return in the form of an SA302 to taxpayers who need them for mortgage applications. The reasons for the way HMRC are behaving as they are are set out here and here. If your potential lender won't accept what is said in those links, then I can only suggest you look for a more flexible lender. Why won't they accept the tax credit receipt figures as shown on your bank statements? Sometimes, government departments will not budge from a practice that they have adopted and never has the term "jobsworths" been more appropriate in some of the dealings I have had with the TCO for clients. It seems to me that HMRC are trying to cut costs by not issuing what they consider to be unnecessary paperwork, ie awards letters. If I were you, I'd make a complaint to the TCO. You might also consult Citizens' Advice Bureau as they have much experience of tax credit disputes. There are some notes on making a complaint here and here. I hope this helps but let me know if you have any further questions.
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