Peachy Posted April 8, 2015 Share Posted April 8, 2015 Marisa many thanks for detailed response. Appreciate that you were answering someone else's question but was just about to research whether need to include my UK pay as arriving in June. Very helpful advice from everyone. Quote Link to comment Share on other sites More sharing options...
Bungo Posted April 8, 2015 Share Posted April 8, 2015 However it should be pointed out that even if your mortgage says it's charging 4%, that doesn't mean you can just calculate 4% of your payments. Over the life of the loan, the bank varies how much of the repayment is paying interest and how much is paying the debt. In the early years, you're paying a lot of interest and hardly any principal. So you may need to ask them what the split is, to know what you can claim. In my over simplified example, I calculated 4% interest on the principle loan (it wouldn't be as straightforward as that in reality but close enough), it certainly would not be any % of the repayments, that would be hugely under estimating it. The interest that has been charged would be disclosed on an annual mortgage statement, whether you are repaying interest or principle doesn't really matter. The relevant fact is how much interest is being added onto the amount due, regardless of how quickly you are paying it off. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted April 8, 2015 Share Posted April 8, 2015 In my over simplified example, I calculated 4% interest on the principle loan (it wouldn't be as straightforward as that in reality but close enough), it certainly would not be any % of the repayments, that would be hugely under estimating it. . I knew you would be aware of that, I was just concerned that the questioner would take your example at face value. Quote Link to comment Share on other sites More sharing options...
benj1980 Posted April 8, 2015 Share Posted April 8, 2015 As I mentioned in post #11, you declare the tax on the UK and Australian tax return. Tax on your rental income will clearly not have been deducted from PAYE. Then if there is any tax paid in the UK, you also enter this as a *credit* on the Australian return, so it reduces the amount to be paid in Australia by whatever amount has already been paid in the UK. Right ok, I think I've got you now! cheers! Quote Link to comment Share on other sites More sharing options...
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