Self Assessment Help

Lisa1978

Hi All,


I am hoping for some advice.
Rental Income
5700.00 Running Costs -1608.00 A 4092.00 100% mortgage interest 3660.00 25% Deductible interest 915 75% Deductible interest B 2745.00 Taxable Rental income A-B 1347.00 40% Tax due C 538.80 25% Deductible interest 915.00 20% Mortgage interest relief on above D 183.00 Tax Due C-D 355.80 When preparing Self Assessment online the figure ends in £1,347
.
Do HMRC automatically adjust the calculation for mortgage interest relief so that £356 tax is due as opposed to £539
or do I need to record that on my Self Assessment somewhere? I cannot see anywhere to record same. Thank you.

00ec25

read this from 2 days ago

https://forums.moneysavingexpert.com/discussion/5868781/btl-interest-full-or-after-deduction

Lisa1978

Firstly, apologies I copied and pasted the above figures from a spreadsheet not realising they would appear like that and run into one another.


Thanks ooec25 that's exactly what I have done but the end figure shows the total taxable rental income of £1,347 (which is correct), however i'm just not sure if they will then apply 40% tax to this and charge me £539 or will they apply the 20% mortgage interest relief to this figure before taxing me so I pay £356 which is the correct figure to pay.


I am not sure where the £183 mortgage interest relief comes into play, ie do I enter it somewhere or do HMRC calculate if based on my taxable rental income.


Thanks