HMRC and s24 advice – How lazy can you get?

by Readers Question

8:39 AM, 22nd March 2018
About 9 months ago

HMRC and s24 advice – How lazy can you get?

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HMRC and s24 advice – How lazy can you get?

The financial year end is almost upon us so I phoned HMRC and asked the question in claiming interest do I do the calculation myself – input 75% of my interest paid or do I input all the interest I have paid and their system will do the calculation. Apparently its the former.

So where is my 20% of my remaining 25% tax credit – do I work that out myself ? More alarmingly given the number of accidental / amateur landlords apparently out there oblivious to s24, how many will click on the icon next to the interest field to look at worked examples ? (This is what I was told).

Potentially there could be hundreds of thousands incorrect returns with over claimed expenditure.

How lazy can you get – can I get some service from HMRC?

AA



Comments

AA

10:58 AM, 23rd March 2018
About 9 months ago

Reply to the comment left by Phil Ireland at 23/03/2018 - 08:43
Box 7 simply says to enter the interest payment anyway all been cleared up.
We input 75% of the interest figure paid by us (to our lender) and there is an additional box where we input the 20% of the remaining 25% (as an expense). Spoke to a very helpful lady who checked and phoned back. I was told the new instructions are not available on the website as yet.
Interesting arises though, if your carried forward losses are because of interest payments how are they treated as the c/f loss is entered in isolation to this new rule.

Michael Barnes

19:54 PM, 23rd March 2018
About 9 months ago

Reply to the comment left by Phil Ireland at 23/03/2018 - 08:43
But that does not say what to enter for property finance costs, and the linked SA105 (property) documents only go up to 2017; it is the 2018 SA105 and guidance notes that are needed to identify what to put into tax return when S24 is applicable.

Puzzler

23:17 PM, 23rd March 2018
About 9 months ago

How have you done this when the tax year is not yet over? I was assuming that you input your details and the site will do the calculations as for other categories (PAYE, pension etc.).

AA

12:28 PM, 24th March 2018
About 9 months ago

I have not done anything yet regarding 17-18. I can't. I have merely asked HMRC how they are dealing with this upcoming issue and what to expect.

Puzzler

19:10 PM, 24th March 2018
About 9 months ago

Oh OK, I assume and would hope the online calculation will do it for us so I don't think you need to worry about how it is done. Save your worry for the additional tax you may have to pay....

AA

20:48 PM, 24th March 2018
About 9 months ago

Reply to the comment left by Puzzler at 24/03/2018 - 19:10
Unfortunately WE have to do the calculation. If our REAL interest payment is say £100, we input £75. Then apparently there is an additional box where we would input the allowable £5 (the 20% of the remaining £25). I suppose it makes sense. We have to sift out expenses we can claim from those we cant. But it does appear to be convoluted. And the extra tax ...just another brick in the wall 😂

Puzzler

21:02 PM, 24th March 2018
About 9 months ago

Oh well I haven't seen it yet but I am surprised as there is such a margin for error or abuse. All other calculations are done for you. But it seems clear enough in principle....or does it??

AA

21:45 PM, 24th March 2018
About 9 months ago

Reply to the comment left by Puzzler at 24/03/2018 - 21:02
And that is the point. Human error which can result in fines and interest penalties is a nice little earner for HMRC.

Stephanie Pooley

20:06 PM, 27th October 2018
About 2 months ago

Reply to the comment left by AA at 24/03/2018 - 21:45
Would anyone recommend their accountant please send details of so I am happy to provide my email

Neil Patterson

6:53 AM, 28th October 2018
About 2 months ago

P118 Accountants Pacific Ltd.
Neil Barlow - members profile and contact form >> https://www.property118.com/member/?id=452

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