[Pip]

Help needed! (yet another task I'm determined to get done pre baby arriving is pesky tax paperwork!)

The Inland revenue have sent me my 07/08 tax form and most of it looks pretty straight forward. I've been in NZ over 12 months, so have no UK income with the exception of our flat which we rented out for six months from june 07 to Dec 07.

in terms of the inland revenue notes on deductions against rental income, most of it seems to make sense, service charges, management & professional fees. I think I take half the rental income as the flat is jointly owned with OH and then deduct half the deductions. My only sticking point, is the whole mortgage thing. We have a repayment mortgage and from looking at the notes, the interest part of the monthly mortage payment appears to be deductible, but not the entire mortgage payment - does that sound correct ?!

its fairly academic, as my share of the rental is less than the personal allowance, but thought I might as well and try and get it right!

Any advice gratefully received..

cheers

Pip

[thezorbster]

Hi Pip
Yes, the interest part of the repayments is deductible - not the whole lot.

Glad you've found something to do whilst on maternity leave!

Take care

[Sam B]

Hey Pip, if you wait up until 9pm or so and phone your local UK tax office and act like a bimbo, they do the entire form for you over the phone. I do it every year.

[DMcG]

Yes, the interest part of the repayments is deductible - not the whole lot.


Ohh, didn't know that - and I've got an interest only mortgage :D

Unfortunately I don't exceed the personal limit, but it might save me a few extra pounds in interest :laugh

Dougie

[Pip]

Thanks Guys - much appreciated. OH has just pointed out I need to do the bank accounts as well.. don't know why, as there's only a few quid in them and just use them for the occasional ordering of b.day presents for friends and relatives in the UK, but I suppose he's right - now i have to request paperwork from them as aparently they don'y send it automatically, which will no doubt take for ever - might have to stick this one on the back burner after all.

*actually, the idea of telephoning the UK inland revenue with a screaming baby is strangely appealing.. payback time! :laugh