With regards to the interest restriction on mortgage interest, where does the new tax credit on the tax return.
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With regards to the interest restriction on mortgage interest, where does the new tax credit on the tax return PLEASE.
Fixed that for you
Well for 2018/2019 you can only claim 50% of your interest against rental income. It also says you get a 20% tax credit on same interest.
So on 3600 interest 1800 is allowable as an expense and a tax credit of 720.
Am i basically reading it wrong then..you just have the restriction?
No 'It' doesn't.It also says you get a 20% tax credit on same interest.
Check your figures.So on 3600 interest 1800 is allowable as an expense and a tax credit of 720.
Debatable whether it would be considered a credit but regardless..... 20% tax relief is available on the amount of interest not deducted.
So in your example:
Deduction of £1,800 given on mortgage interest of £3,600.
20% tax relief available on the other £1,800.
However, be mindful this amount can also be restricted based on other income/property income. That said, you shouldn't have to worry too much about calculating this yourself.
I did do the research but was still unsure. I did NOT want to file the return incorrectly. I thought this forum was supposed to help people not be sarcastic. No wonder so many I speak to stay away when there are people like you posting.
Are you using tax return software or hmrc online? Sometimes there are restrictions to the amount you can claim re the 20% of the remaining interest and so you need to be sure exactly whether your adding the right amount. There's also a carry forward on any unused.
Software will calculate it for you. Not sure if hmrc online will, don't use it.
I am just surprised that having been advised how bad this place is you still posted a question....!? bizarre!
There can be unpleasant undertones in this forum (just as with any site that lets the public in). You just have to stomach those I think, sadly.
You'd probably get a warmer overall response though if you'd asked the relevant question (which was about Taxfiler, not the tax return itself) and done so in the first year in which the change happened.
Presumably Taxfiler sorted it for you last year and you didn't even notice. There's an irony in there somewhere - and I'm not being sarcastic.
tip of the iceberg if this thread is deemed to have unpleasant undertones.....
(still suggest a bit more research would have got the answer....and if that could not be obtained it suggests the person doing the research shouldn't really be doing it....not sure that is offensive/unpleasant...or untrue)
Sorry but I did research it. I was unsure how to show it on the tax return. Sorry..but no one would ever post a question if that's the case.
That's fair comment. There are quite a few things where I know the tax treatment long before I know how I am supposed to show it in the tax return.
"Unpleasant undertones" is a subjective thing.
To me, I read nothing particularly untoward in this thread (not that I've read it carefully!) Elsewhere (within this forum) there are comments that would have been better left unwritten [and not just for technical incorrectness]. I've probably made some of them [definitely so, if you include the technical wrongnesses].
But what offends me might not offend you - and vice versa.
wouldn't disagree with you Tax Dragon....
although the comment 'there are people like you posting' suggested something far more offensive and vile had been said, when actually I was just questioning the ability of the person to prepare the return (my perception of the subject matter, material freely available to all online etc)….and the implication that maybe engaging an agent may be more appropriate....