Can I claim for part of my mortgage?

[abijacgem]

Hi just finishing off the last bits (I think) to my first tax return (Yeah). Bit confused about the mortgage bit.......can I claim a portion or not? I see if you live in rented accommodation you can claim ??!
Thx in advance x

[littlemiracles]

Hiya,

I am of the understanding that you can only claim for rented accommodation and NOT for a mortgage. Im sure someone will be along soon who will be able to confirm this

[Mookins]

afraid not hun not fair really

xx

[tashaleee]

Rented only - nothing for mortgage

dont know why its that way though

[abijacgem]

Thx guys

[sarah707]

Have a look at the document in free downloads about tax information.

It should help!

[Chatterbox Childcare]

It just isn't worth it - too much tax to pay in the future

[chani]

Yes you can:

see http://www.hmrc.gov.uk/manuals/bimmanual/BIM45745.htm which says

"Where a part of the property, which is the borrower's only or main residence, is only sometimes used for business purposes (but for a significant amount of time and then exclusively) the loan in question may be apportioned on any reasonable basis that takes account of both the proportion of the property so used and the duration of such use. "

I don't know what Debbie is refering to by "too much tax to pay in the future". If she's refering to Capital Gains Tax, then there will only be CG if a part of the house is for business use only 24/7. If there is some private use, then no problem with CG tax

[Chatterbox Childcare]

[QUOTE=chani;795126]Yes you can:

see http://www.hmrc.gov.uk/manuals/bimmanual/BIM45745.htm which says

"Where a part of the property, which is the borrower's only or main residence, is only sometimes used for business purposes (but for a significant amount of time and then exclusively) the loan in question may be apportioned on any reasonable basis that takes account of both the proportion of the property so used and the duration of such use. "

I don't know what Debbie is refering to by "too much tax to pay in the future". If she's refering to Capital Gains Tax, then there will only be CG if a part of the house is for business use only 24/7. If there is some private use, then no problem with CG tax[/QUOTE]

Not according to the IR or accountants if you discuss it with them. Please post anything to the countrary as I would love more to claim.

[chani]

[QUOTE=DebbieS26;795137]

Yes you can:

see http://www.hmrc.gov.uk/manuals/bimmanual/BIM45745.htm which says

"Where a part of the property, which is the borrower's only or main residence, is only sometimes used for business purposes (but for a significant amount of time and then exclusively) the loan in question may be apportioned on any reasonable basis that takes account of both the proportion of the property so used and the duration of such use. "

I don't know what Debbie is refering to by "too much tax to pay in the future". If she's refering to Capital Gains Tax, then there will only be CG if a part of the house is for business use only 24/7. If there is some private use, then no problem with CG tax[/QUOTE]

Not according to the IR or accountants if you discuss it with them. Please post anything to the countrary as I would love more to claim.

First of all, I am an accountant. My wife is the childminder. Secondly, HMRC (as the IR is now called) agree, see http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm#3 that as long as the area that is used for business is also used at some time for living, then full PPR is available. So if you build an extension that will be used for 8 hours a day for childminding, and 1 hour a day for relaxing with your family every evening, then full PPR (exemption from Capital Gains Tax) is available. If the extension is exclusively for childminding, then you'd have a CGT issue.

I quote from HMRC: "You might work at home because you run your business from there. If you do, you can still get the full amount of the relief as long as you keep using all of your house as a home. For example, the room you use as an office may also be used as a guest bedroom."

[aly]

even though we are self employed like other SE workers...we as childminders work out differently regarding expenses etc.

It is not just NCMA we got our details from they work together with HMRC to get those figures and details for us.

[chani]

HMRC has a different agenda to you. Their job is to collect as much tax as possible. Your right is to pay as little tax as (legally) possible. NCMA and HMRC may have "agreed" that you can't claim (eg) mortgage interest, but why on earth wouldn't you want to? There is nothing in statutory law saying you are treated any differently to any other SE person, so you have no legal obligation to use the HMRC/NCMA agreement if it works against you.

Of course, if you want to pay more tax than you legally have to, that is your prerogative. Although to be honest, why would you?

The idea behind the HMRC/NCMA agreement was simply to make it easier for childminders to work out their expenses. Those of you paying mortgage interest are better off not using it.

[sarah707]

Please can I refer anyone confused by this thread here -

http://childmindinghelp.co.uk/forum/...ad.php?t=68714

Debbie has clarified all the points made with HMRC.

Thank you to Debbie for her hard work keeping us on the right tracks