Should I have this document?

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    Should I have this document?

    I am a new landlord having let out my first BTL in late May.

    I am in the midst of remortgaging a second property which i intend to let out as well once this process is complete.

    However during the remortgaging process my broker has requested my last two tax calculation documents.

    I am a bit baffled by this. Should I have this document?

    Thank you

    #2
    Your P60, you get one every year from your employer. That should be all you need, if you had no other income!

    Comment


      #3
      If you had started to receive rental income say 3 years ago , you would have been sent SA 302 letter with the tax calculation for first year.

      If you only started with your first BTL in May this year , you will not have received any tax calculation for your rental income..

      Comment

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      • Reply to Interest expense on tax return - how to obtain?
        by JamesHopeful
        Thank you for clarifying -- my wording was perhaps a bit unclear. When I said "everyone (whether their marginal tax rate is at basic, higher or additional rate) continues to report mortgage interest in the same way", I meant that there haven't been separate reporting systems introduced depending...
        03-06-2020, 11:13 AM
      • Interest expense on tax return - how to obtain?
        by leasee123
        I will be filling out a 2019/20 SA tax return (my first time!) and will need to declare the income from my buy to let property. The property is on a residential mortgage as it was my home but since last year I have let it out with my lender's permission. I was and continue to be a basic rate tax payer...
        02-06-2020, 15:01 PM
      • Reply to Interest expense on tax return - how to obtain?
        by leasee123
        Thanks so much jpkeates for clearing that up. Just so I completely understand - say I left the property instead one day prior to the start of the let - i.e. 31st May, would I report the interest paid on the mortgage on 15th May or does it instead start from 15th June? I am pretty sure it is the former...
        03-06-2020, 11:12 AM
      • Reply to Interest expense on tax return - how to obtain?
        by jpkeates
        If you're reporting on the cash basis, you record the costs as having been incurred when they happen.
        So no accrual is needed.

        The exception to the costs being recorded as incurred is interest between when you moved out and when the first tenancy began.
        As you're working on...
        03-06-2020, 10:58 AM
      • Reply to Interest expense on tax return - how to obtain?
        by leasee123
        Thanks for all the replies, much appreciated. I am still confused however as to what interest to report in the tax return. The property was let for the first time last year say 1st June after having lived there myself for a number of years until end of April last year. My mortgage is paid monthly...
        03-06-2020, 10:54 AM
      • Reply to Interest expense on tax return - how to obtain?
        by jpkeates
        Just for the avoidance of doubt, the way the interest is reported does actually change.

        Allowable interest (while in the transition period) is recorded as such (in Box 26) and the restricted element goes in a separate entry (Residential finance costs not included in box 26).
        The allowable...
        03-06-2020, 10:52 AM
      • Reply to Interest expense on tax return - how to obtain?
        by JamesHopeful
        To be clear, everyone (whether their marginal tax rate is at basic, higher or additional rate) continues to report mortgage interest in the same way, and it is treated in the same way for tax purposes. It is just that new way in which it is treated (as a tax reducer of 20% of the interest rather than...
        03-06-2020, 10:23 AM
      • Reply to Interest expense on tax return - how to obtain?
        by jpkeates
        You can't use the calculation for an interest only mortgage on a repayment mortgage, it doesn't work the same way.

        You claim the interest from the period prior to the first let as though it occurred on the first day of the first tenancy (which is when your business began).
        Same as...
        03-06-2020, 08:09 AM
      • Reply to Interest expense on tax return - how to obtain?
        by doobrey
        Except that the capital sum owing reduces with each payment....
        03-06-2020, 07:30 AM
      • Reply to Interest expense on tax return - how to obtain?
        by Gordon999
        You should report the same interest figure as the mortgage lender may be reporting to hmrc.

        On the blank page in your tax return you can make a declaration the mortgage interest was ££££ for 2019-2010 plus xxxx for 2018-2019....
        03-06-2020, 07:23 AM
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