First time self assessment calculation before submittnig?

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    First time self assessment calculation before submittnig?

    Hi all

    This might be a simple one, or not.

    Can someone please advise if this seems correct?

    For 2019-2020 I have the following on the HMRC form:

    £9715 income
    £2558 total allowable expenses

    Profit £7517

    I believe mortgage payments/interest are not counted now? unless I should have included that in taxable expenses? but didn't read it anywhere :/

    The next page worked out £1425.20 due for 2019-2020 based on my figures, then it seems you have to pay half of the next year.

    I did this calculation as a check on the Tax Scouts rental income calculator and it mentioned I can claim £510 from mortgage interest payments and £306 as a tax credit?

    This is my first time doing this, any help much appreciated.


    Are you using the online self assessment or a paper tax return?
    Have you had a statement of interest from your mortgage company telling you how much interest you have paid on your mortgage for the 2019 - 2020 tax year and have you included that amount in the £2,558 expenses figure?


      Thanks BTL

      I am using the online version as it advised me to.

      No actually, is this something I request from them or do I use the annual statement they send? The £2558 does not include my mortgage payments


        You need to phone your mortgage lender and ask them to send you a statement of interest for the 2019 - 2020 tax year (I’m assuming you’ve got a buy to let mortgage rather than just renting the property out with a residential mortgage) some lenders send them without you having to ask but if you haven’t received it yet they probably won’t send it until you ask.
        For the 2019 - 2020 tax year 25% of your interest (and any associated costs such as broker fees) is deductible as an expense, the other 75% you will receive a 20% tax credit on in the form of a reduction on the tax bill. From 2020 onwards none of it is deductible as an expense instead you will receive a 20% credit on the total allowable mortgage costs. There is separate boxes in the online assessment for the mortgage costs, I’ll have a look back through mine tomorrow to refresh my memory of how it’s done as I had a bit of confusion with mine this year.


          As for paying half of next years bill yes you have to pay that but I think you have until 31st January 2021 to pay that.


            Thank you BTL, I really appreciate this as did not know.

            Yes I have a buy to let mortgage so should be fine to obtain this.

            Aha, so the £510 tax scouts refer to is the 25% of the interest.

            Oh right, I didn't notice the mortgage cost ones but maybe overlooked it.

            Many thanks indeed, most helpful


              For tax scouts calculator to know that £510 is 25% of your mortgage interest you must’ve already received a statement of interest stating that your interest for the 19 - 20 tax year was £2,040
              75% of £2,040 is £1,530 and a 20% credit on that would be £306 so that’s where the £306 came from in your original post. This means you must already have the statement of interest so don’t need to request one.
              The figures of £510 and £1,530 are what is needed for the tax return but they are entered separately from your expenses such as gas safety certificate and any maintenance expenses etc.


                Taking your mortgage costs in to account I think your tax bill should end up somewhere around £1,020 assuming all the figures you’ve supplied are correct.


                  On tax scouts I entered my monthly interest only payment on their calculator which I guess is the same thing and makes sense now.

                  Yes I did, and do, find it a little confusing where to enter what, despite reading lots and watching their videos! If you could advise or point me in the right direction it would be great?

                  I ticked the option to submit expense in one go rather that detailed, assume that it ok? also surprised it seems to be done on trust, luckily I do keep all receipts


                    Also just remembered I changed the deal with the provider and paid 1 £1495.00 fee which must have to go somewhere too?

                    many thanks!


                      You need to know how much total interest you’ve paid during the entire 19 - 20 tax year, add that together with the £1,495 and then work out what 25% and 75% of that figure is to enter in the appropriate boxes on the tax return , you don’t just enter your monthly payment.


                        Ok, I seem to be fine with my numbers. Total amount of monthly interest only mortgage repayments and the fee to change offers is £3556.50 which 25% of that is £889.13 and 75% of is £2667.38 as far as my calculations go...

                        I just cannot find where I enter these figures, even having gone over the form several times now!

                        Just to be sure I haven't ticked something wrong, on the summary it shows:
                        Summary for Rental income

                        Business income: £ 9,715.00

                        Total allowable expenses: £ 2,558.00

                        Profit or Loss: £ 7,157.00

                        Capital allowances: £ 0.00

                        Balancing charges: £ 0.00

                        Tax adjustments: £ 0.00
                        Total taxable profits or net business loss (before any set-offs): £ 7,157.00Help about<b></b>: Total taxable profits or net business loss - opens in a new window

                        This is where I entered the rental income and thought the wording seemed odd:
                        Income for Rental income

                        I commit to provide honest and accurate information within this section.

                        Turnover - takings, fees, sales or money earned by your business: (optional)Help about: Your Turnover

                        Any other business income not already included above: (optional)Help about: Any other Business Income

                        Trading Income Allowance: (optional)Help about: Trading income allowance

                        Total business income: £9715.00

                        Hope that all makes sense and really do appreciate the time helping me on this.


                          I dont think my previous post was approved as I edited it a few times and copied some text from my assessment form, maybe not allowed?


                            It was saying my figures are fine now but I just cannot find where I enter these figures, even having gone over the form several times now


                              It was saying? What’s ‘it’? Tax scouts calculator or Online assessment form?


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