Mortgage Fee and Valuation Fee - how to classify
Question asked by Russell Mainwaring 3 weeks ago
Hi
Which 'Account' (expense category) should these be recorded against-
Mortgage set up fee
Mortgage valuation fee
Thanks
Russ
Hi Russell,
There are no default account codes for these types of fees in the system. However, you can create custom accounts by heading to Settings > Account codes > Create account code. If this is related to residential property, you should select the account type; Residential finance costs (20% tax relief).
However, I would advise double checking HMRC's guidance.
Tommy
Best answerHi Russ,
If the fees are related to residential property, when creating your custom codes, you should select the account type; Residential finance costs (20% tax relief). This will ensure the 20% tax relief applied to the transactions will be included in the year end tax calculation.
Tommy
Thanks Tommy
I'm new to the Clearbooks software, I just need to make sure that the costs incurred for the valuation fee and mortgage product fee, track across correctly.
I could put to 'bank charges', similarly, I could class as 'mortgage interest, although neither are quite correct.
Either way, they are classed as 'Finance costs' and are deducted at the very end of my self assessment (as opposed to 'repairs', etc that are taken off beforehand).
Thanks
Russ
You must 