Reply to: New mortgage

[northernladuk]

That dividend tax is a nightmare, I signed a petition about it, don't know if it will do much good but still...

It's not as bad the IR35 situation to be fair.

[Kitten1978]

So, Kitten1978, do you put the chutney spoon back once you have licked it?

In regards to your other questions - yes, natural to feel nervous taking on more expense but with all that cash sloshing around in the system wages/rates could well keep pushing up and as long as you keep with current skills and make good connections as your rate should move up too. Yes, we are going to be hit with dividend tax and possibly shafted over expenses too so you definitely need to take that into account when budgeting for the future. What market are you in and what is contract availability like at present?

Urrrgh no I wash it up, what do you think I am!?! :-) Haha

I am in BI, SQL Server, (SSAS, MDX, SSRS, SSIS) and the market *touch wood* is looking good at the moment.
I am intending on over paying the mortgage.
That dividend tax is a nightmare, I signed a petition about it, don't know if it will do much good but still...

[ChimpMaster]

Erm, no. You're in business, aren't you? Interest on a loan is only deductible to the extent that the loan is used for business purposes, so any loan on a BTL to fund a private residence will not be for business purposes and therefore not deductible.

It doesn't matter that the collateral (your BTL) is a business rental, it's the purpose that you use the loan money for.

Yes I'm in business, thanks for asking.

As for intent of capital allocation, there are ways and means. OP could even buy her resi home and then release equity to fund a BTL, which would make part of the interest on her home mortgage a tax deductible expense. Centurian's post above does well to highlight the possibilities available in using equity.

How many properties are you managing in your own investment portfolio?

[TykeMerc]

You may have found the endless dribble of the fake ID's from the South West desirable, but a lot of the regulars certainly didn't/don't as it's still going on, you've also confirmed that the "no sockpuppet trolling rule" is and was a complete sham by policy.
It also gives the lie to the assertions that they aren't permitted as a way to keep the site traffic up.

As I have said before the sockpuppets with some wit and comedy value are vastly different such as that parrot that stalks Zeity, the erstwhile Captain that annoys Zeity (pattern emerging here?), the Daleks, Spartacus and I'm sure there are loads more, they are deployed only as foils for a joke though.
Chalk and cheese compared to the Kandr re-incarnations, Wilmslow, Gricer, Gittins, endless Aussielongs etc, etc which are just trolls.

The long term trolling by sockpuppets has created exactly the environment which you're expressing concern about, genuine posters being treated as yet another in the endless stream of troll ID's due to the signal to noise ratio, to term it an own goal is a gross understatement.
The trolling ID's don't generate any fun, they're just witless with no entertainment value at all.

I can't believe that you're not aware of the spike in formulaic sockie posts in the professional sections (for postcount to allow free posting) from new and "sleeper" ID's created a few years back every time that a few of the sockies are finally killed off, the pattern has been repeated on many occasions. That pattern also includes the trolls being flagged, often defended by yourself, NAT and Cojak and then eventually, reluctantly killed.
As to reporting them for action, unless there's been a dramatic and genuine change of policy rather than the current and past sham then it achieves exactly nothing.

[administrator]

Hmm, I dunno Admin, whether you are being serious or hopeful. But what I have found is that the sockie strategy of creating a girlie sounding username and a girlie avatar makes most of the mods in here melt. Plenty of examples where a sockie was identified successfully but mods chose to let the charade continue perhaps to liven up the forum a bit.

We don't mind sockies too much. They have provided a lot of entertainment over the years and have been something of a tradition on the site. Spartacus, where are you when we need you? When they don't troll the professional forums then they can be a bit of fun. Fun is a good thing. Not sure which accounts you are referring to? Gittins Gal was clearly one from the Gricer stable but to be honest those accounts amused me anyway and I am sad they are gone. I can only think of one more, unless you count Cailin Maith, who succeeded so well in her pretence of being a lady that Churchill married her and she produced baby CUK. That was a pretty good charade!

The problem we have is that real accounts are being hounded on signup as being sockies and it has happened more than once now, where a real new user has been accused of being a fake account. If we want the forum to be more fun without the proliferation of sockie accounts then let us take care of the sockies and if you report them to us we will deal with them.

I am serious and hopeful

[TykeMerc]

Which is only the case if you tell them - people have been doing that for years. Landlords have been buying their own primary residences and/or funding improvements to their primary residence by extending their BTL mortgages and releasing capital for yonks.

Get tax relief when releasing equity on a buy-to-let property

It's a basic business finance principle. Businesses can refinance to release capital back to shareholders and the refinancing costs are tax deductible in the future. Yes, there are some flimsy rules to prevent it for BTL, but HMRC often can't be arsed to pursue it because it's so hard to prove.

It's another reason why the BTL interest changes came in the recent budget - to reduce the incentive for it.

Absolutely. I'm not going to say that it's overdue, but in hindsight I'm a bit surprised they didn't do it earlier. Unless of course it was to keep the house price bubble inflating which is entirely likely.

Danger Will Robinson, severe risk of drifting close to being on thread topic!

[centurian]

Erm, no. You're in business, aren't you? Interest on a loan is only deductible to the extent that the loan is used for business purposes, so any loan on a BTL to fund a private residence will not be for business purposes and therefore not deductible.

It doesn't matter that the collateral (your BTL) is a business rental, it's the purpose that you use the loan money for.

Which is only the case if you tell them - people have been doing that for years. Landlords have been buying their own primary residences and/or funding improvements to their primary residence by extending their BTL mortgages and releasing capital for yonks.

Get tax relief when releasing equity on a buy-to-let property

It's a basic business finance principle. Businesses can refinance to release capital back to shareholders and the refinancing costs are tax deductible in the future. Yes, there are some flimsy rules to prevent it for BTL, but HMRC often can't be arsed to pursue it because it's so hard to prove.

It's another reason why the BTL interest changes came in the recent budget - to reduce the incentive for it.

[SueEllen]

What does that mean?

LMGTFY

No DIY

[NotAllThere]

What does that mean?

Who Gives A Fig?

...or fix the reality gap.

Working on it.

[AtW]

Tried the reporting thing in the past, gained zero traction despite them ending up banned after multiple months and hundreds more posts.

Maybe you should give up finally???

As long as posting is of some value (fun, useful or just makes you feel better about your own miserable life) then it's ok. Sockie or not - admin will sort 'em out without your help.

[fullyautomatix]

Sockie hunters - if you think a post is from a fake account then use the report post system and let us sort it out. I have lost count of the number of times you have called sockie only for it to be a real person and it is getting a little tiresome. We are able to check things out that help to give a better idea if a poster is genuine or not so let's give this sockie thing a rest and let us work out what is a fake account and what isn't - you can help us by simply reporting the post if you think it isn't genuine. Maybe we should introduce infractions for people calling out sockies rather than reporting them...

Hmm, I dunno Admin, whether you are being serious or hopeful. But what I have found is that the sockie strategy of creating a girlie sounding username and a girlie avatar makes most of the mods in here melt. Plenty of examples where a sockie was identified successfully but mods chose to let the charade continue perhaps to liven up the forum a bit.

[meridian]

New mortgage

As for the current house that will become your BTL, you would have wanted to maximise the loan on that property to fund your new residential home. This is because the loan interest on the BTL will be tax deductible, but you also need to be aware of the recent budget changes proposed by the Chancellor.

Erm, no. You're in business, aren't you? Interest on a loan is only deductible to the extent that the loan is used for business purposes, so any loan on a BTL to fund a private residence will not be for business purposes and therefore not deductible.

It doesn't matter that the collateral (your BTL) is a business rental, it's the purpose that you use the loan money for.

[RetSet]

Yes.
Yes.

But only you know how secure your income is likely to be in the medium/long term and you have to weigh this up against what is effectively a long term debt. Perhaps your partner also contributes, in which case you aren't so reliant on a single income.

£1,000 / month is not a lot for a mortgage these days, and depending on your personal circumstances you might want to overpay as much as possible - though hopefully you will have secured a very low interest rate and so might even consider investing surplus income elsewhere.

As for the current house that will become your BTL, you would have wanted to maximise the loan on that property to fund your new residential home. This is because the loan interest on the BTL will be tax deductible, but you also need to be aware of the recent budget changes proposed by the Chancellor.

Feck me. This is Sensible City. Mods! - we clearly have a troll here! Perma Ban for Chimp Master, please!

[mudskipper]

So post in one of the professional forums, such as Accounting/Legal for non-rude helpful answers.

Where's that 'optimistic' rating...

[Gumbo Robot]

Tried the reporting thing in the past, gained zero traction despite them ending up banned after multiple months and hundreds more posts.
Also seen the Mod response that they aren't sockies (Gittins and the endless stable of related ones are examples, the Scroatman one is still posting) and yet they were/are.
Unix was clearly ID'd as the many times banned Kandr/Russell on many occasions, still posting.
MercladUK was ID'd as a sockie at post 1, took a good 1000 posts, I'm not convinced the track record of sock killing supports your assertions.
On the tiresome front I refer the "honourable Gentleman" to the endless chain of sockpuppet troll postings.....

Hmmm.... inneresting