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Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly
Is it a buy to let mortgage as you can only claim the interest element of the mortgage and now only 50%
What other income do you have ? as its added to all income to establish the tax rate due
So other incomes and tax paid including company benefits and savings that are listed in your tax return and details of any pension payments made post tax or gift aid
I can then advise further
Yes - im still here I need figures please
And tax paid ?
Any savings ?
And post tax pension contributions
Company car ? Medical benefit from employer ?
Hi I will make the calculation for you now
Ho so £115000 income plus £330 medical and then net rental income £6900- £2659 as only 50% of interest paid due leaving £1969 so £115330 plus £1969 = £117299
Then as your income is in excess of £100,000 your personal allowances are restricted by £1 for every £2 in excess so full personal allowances £11850 and you are £17299 excess over £100,000 which means a reduction of £8650 from the full allowances leaving £3200
savings ignored as below savings rate exemption
So then £3220 tax free then
£34501 at 20% = £6990.00 leaving the balance of income (£117299 - £3220 - £34501 = £79578)
so £79578 x 40% = £31831.20
So total tax due £41862.30 less paid £35356 - so tax due £6506.40 by my calculations
we are about £400 out from each other due to the half interest restrictions and some of the personal allowance restrictions
That would adjust the tax bill by £160 only you can decide that as you lose personal allowances due to your higher level or earnings in excess of £100,000 which do advise HMRC so they can adjust this tax years tax code.
The rent position costs you £787.60 and next year will cost you £1000 approx so you are in pocket regarding the rental position its your tax code giving your full personal allowances that has cost you this year
All done by pressing accept or having rated me - thank you and have a great day - Sam