Collaborate on Expense Bill Format for Mortgage with Ease Using airSlate SignNow

Expense bill format for Mortgage

mortgage product fees are they allowable for tax purposes [Music] hi I'm Kimberly Shattuck qualified Charters accountant property investor and entrepreneur let's sit down and have a chat our mortgage product fees allowed with tax well yes they are the key thing here is you make sure that you actually record them and the reason I say that is because a lot of the time there's many a person who'll add it to the loan and maybe forget about it but it is a separate fee so what you can do is be claiming that against your tax position so let's start with a company because in a company it is just flat allowable it will go into the tax computation and on that basis you'll get the tax relief at the appropriate tax rate whatever you're paying at that point in time when the corporation tax return is done from a personal point of view again it is still allowable so again you just need to make sure you're including it in your tax computation the only prerequisite for this one is it does fall under section 24 as it's to do with finance charges so therefore you will get tax relief but it will be limited to the 20 tax rate so how it will work for you as an individual is you'll get your rental income you'll take off all your rental expenses and get your profits you'll calculate your tax on your profits based on your current tax rate whether it be 20 or 40 or 45 even after you've done that calculation you will then take a tax credit of 20 off the mortgage fee so if you've got a thousand pounds mortgage product fee you'll take the thousand pounds times it by the 20 tax credit you're allowed 200 and you'll reduce your personal tax bill by 200 pounds so still definitely worth claiming let's get as much tax relief as possible but there is a slight limitation on what you're claiming as a individual compared to as a company where it could be 19 it could be 26.5 it could be 25 depending what tax rate you are sitting at at that point in time so what evidence do you need well the evidence is really going to be what's on your mortgage to offer it's going to be what's on your mortgage loan statement as this is where it will show you the mortgage product fee that has been applied on to your mortgage now you may have paid it and if you paid it it's probably easier to remember that you've actually paid it as you'll probably have a receipt or an invoice or something like that so again just keep copies of whatever you do have as this is your evidence for tax purposes if you are a company and you are paying things privately then make sure you just do your expense claim form to put that into the company so you've got again the evidence that you need to show that you have paid for this person maybe on a credit card or a debit card to cover the mortgage product fee the fees can come in many forms as some are a flat rate fee some are a percentage of the loan whatever it is these are all still allowable so just make sure you keep track of what you're spending and make sure you're claiming it against your corporation tax or your income tax to help reduce that pesky tax bill hopefully today you've discovered about mortgage product fees and how you can be claiming them to get tax relief in your tax computations please do leave a comment if you have any questions please like the video and do subscribe to the channel let's make tax less taxing [Music] [Music] [Applause] [Music] let's take tax less taxing