Big, huge mess

agrinnall

While I don't really want to heap more on you I suspect that you may also be unaware of other aspects of being a landlord, some of which are as important as making sure your tax is right. I suggest you have a look at G_M's post below which gives the basics on becoming a landlord.

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

getmore4less

http://www.landlordzone.co.uk/

might also be a usefull resource

pmlindyloo

Another vote for getting an accountant to help you sort this.

Honestly it is worth the money to save you the extra stress and worry.

Get all the paperwork (as has been suggested) ready and google 'accountant + your area and get some quotes. Or/and if you know anyone who already uses an accountant ask for recommendations. When you have chosen ask them for a list of everything that you need.

I do the accounts for my husband who is self employed and we employ an accountant. They are absolutely worth their weight in gold as far as I am concerned. In the end a good one will save you money.

Lexxi

Thank you so much for all the replies! I feel completely overwhelmed with it all!

I phoned the tax the firs thing this morning, they told me to get together all the income details and gross profit and then to phone them back and they may be able to do it over the phone. They didn't take any of my details

I have dug everything I can find out of the loft and started a spreadsheet of dates, rent due, then deductions from there, initially the house was let through an agent.
When I split it into tax years do I need to work out part months to go up to the end of the tax year? or just the payment for the final month of the tax year, then the payment for the first month of the new tax year.

I don't have full records of all the work done, the guys I use I have known for a while so I just usually make a phone call to explain a repair, text over the address and contact details then get a text saying what is due when the work is done. I might see if they have their records to do with addresses or dates. I never considered that I would need the receipts, the big stuff I have records for but the others were pretty minor repairs.

I do have the things like the gas safety sorted and all the records for that, along with permission to let and insurances but thank you agrinnall.

How do I deduct the interest from my mortgage, I have the cost of the mortgage payment and the interest rate, do I just work out what say 4.98 % is of £300 and put that down or would it need to be to do with the whole outstanding amount?

What I was thinking of doing next is finishing off what I have to hand and getting as much done as possible and then getting in touch with an accountant so that there is less work for them to do, which I hope would save a bit of money.

I have also found as many P45s and P60s as I can, which figure do I need as I have a total figure then a tax deducted figure?

I'm sorry for all the stupid questions, I just about understand my payslip, when I get them, so this is right over my head!

pinkteapot

Lexxi wrote: »

How do I deduct the interest from my mortgage, I have the cost of the mortgage payment and the interest rate, do I just work out what say 4.98 % is of £300 and put that down or would it need to be to do with the whole outstanding amount?

Unfortunately it's a bit more complicated than that. Near the start of the mortgage, most of your repayment is interest and very little is capital. Towards the end, only a small amount is interest.

Ask your bank for mortgage statements for the necessary period. Our statements for each month show our repayment being credited and interest being deducted - so they show the exact amount of interest each month. You can add that as a column to your spreadsheet.

The interest amount won't be the same for each individual month - it will gradually get less with time.

Lexxi

Thanks, I was hoping it might be straightforward

I have annual statements and towards the bottom it says what the capitalised interest is but I don't know what this will mean for the months when the rates changed. I'll phone the bank now

Lexxi

I knew there was a reason I stick with my mortgage people. They have a tax statement that they can send me for each of the years which works out what the interest is which they say is sufficient usually, PHEW!!! I thought I was going to be sat with the calculator for the rest of the day, trying to figure the interest for the tax years!