Introduction and Overview
- This article outlines the reasons and procedure for requesting Mortgage Interest Certificates from lenders
- These are required when dealing with Self-Assessment Tax Returns (SATR) with individuals with Rental Income
Why is it Required?
- When preparing Property accounts, the amount of mortgage interest paid in any given tax year needs to be known so that Net Rental income can be calculated
- This forms part of an individual’s SATR
- Failure to provide the certificate means that we cannot finalise your property accounts and tax return and increases the costs to Avar
- The certificate from the lender serves to act as third party proof of the amounts paid and can be used as evidence in the event of any HMRC tax investigation and enquiry
Obtaining the Certificate
- The majority of lenders unfortunately do not send these out automatically
- You can easily obtain the certificate by telephoning your mortgage provider
- This will then be sent out in the post
- You should send a scanned copy to Avar as soon as it arrives
When is it Required by?
- This should be sent to Avar as soon as the tax period ends on 5 April each year
- In the event the tax return deadline is fast approaching and you have not received the certificate, you can agree the interest figures with the lender over the telephone. This can then be communicated to Avar, at your own risk