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Where Taxpayers and Advisers Meet

Boxes 26 and 44, 2017/2018 SA Tax Return

FarmerJack
Posts:9
Joined:Wed Feb 20, 2013 3:22 pm
Boxes 26 and 44, 2017/2018 SA Tax Return

Postby FarmerJack » Wed Feb 06, 2019 3:40 pm

A friend's sister has showed me her 2017/2018 SA Tax Return (downloaded PDF) and the Tax Return calculation (downloaded PDF). In 2017/2018, the total of Finance Charges (i.e. mortgage interest payments) paid from her bank account was £11,181.

In Box 26 "Loan Interest and other financial costs", she entered £8,386 (75% of £11,181). In Box 44, "Residential Finance Costs not included in Box 26", she left this blank (i.e. £0.00).

I would be grateful if someone would advise whether Boxes 26 and 44 have been completed correctly. If they have been completed incorrectly, please advise what she should do to correct this (the Tax Return has been submitted and the her "Income Tax Due" has been paid). (She would appreciate any help on this as she is caring for elderly relatives and is working only part-time.)

Thank you.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Boxes 26 and 44, 2017/2018 SA Tax Return

Postby robbob » Wed Feb 06, 2019 3:45 pm

it looks like box 44 is wrong - the remaining 25% of finance costs not in box 26 would normally appear in box 44 - ie 25% of 11181 or 11181-8386


https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/690391/sa105-Notes-2018.pdf
Box 44 Residential finance costs not included in box 26
Put the remaining 25% of residential property finance costs which you didn’t include in box 26
in box 44 – see the working sheet for box 26.This amount will be used to calculate a reduction in your Income Tax.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Boxes 26 and 44, 2017/2018 SA Tax Return

Postby robbob » Wed Feb 06, 2019 3:46 pm

To correct - login to gateway and amend the return to contain the correct box 44 total and submit to hmrc - helpline will advise as appropriate in this regard.

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Boxes 26 and 44, 2017/2018 SA Tax Return

Postby AdamS93 » Wed Feb 06, 2019 5:11 pm

Yes, box 44 is incorrect.

Whether it will make a difference or not will depend on if she has paid any tax and the amount of rental income.

Off topic but £11,181 is a lot of interest to be paying with the way interest rates are currently.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Boxes 26 and 44, 2017/2018 SA Tax Return

Postby robbob » Wed Feb 06, 2019 5:46 pm

Off topic but £11,181 is a lot of interest to be paying with the way interest rates are currently.
probably not really nowadays if its a property in london :)

FarmerJack
Posts:9
Joined:Wed Feb 20, 2013 3:22 pm

Re: Boxes 26 and 44, 2017/2018 SA Tax Return

Postby FarmerJack » Mon Feb 11, 2019 1:57 am

To correct - login to gateway and amend the return to contain the correct box 44 total and submit to hmrc - helpline will advise as appropriate in this regard.
Thank you, robbob, This has proved very helpful. Box 44 in the Tax Return has been amended and this has had the appropriate effect on the tax calculation. The person concerned is most grateful.

FarmerJack
Posts:9
Joined:Wed Feb 20, 2013 3:22 pm

Re: Boxes 26 and 44, 2017/2018 SA Tax Return

Postby FarmerJack » Mon Feb 11, 2019 2:12 am

Yes, box 44 is incorrect.

Whether it will make a difference or not will depend on if she has paid any tax and the amount of rental income.

Off topic but £11,181 is a lot of interest to be paying with the way interest rates are currently.
Hi AdamS93. Thank you for confirming this about box 44. Amending box 44 has resulted in a reduction in tax payable (so a refund should arrive).

I agree that the interest paid looks high. Apparently, a fixed rate mortgage with a very long term (ending soon) was arranged in the noughties when interest rates were higher than present (fortunately, there has been worthwhile growth in the value of the property since the mortgage was arranged). Many thanks.


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