Feature Focus: Mortgages and Valuations

A critical part of most property investments is finance, more specifically mortgage finance. Whether it’s essential to afford your investment or you’re using it to amplify/gear your returns, there’s a good chance you’re using a mortgage.

Hence keeping track of your investment mortgages is an important part of managing your portfolio.

PaTMa includes the ability to record all of your mortgages and property values.

Key Benefits

  • Automatic reminders before fixed rates end – save hundreds of pounds with plenty of time to arrange a new deal.
  • View your current debt/equity ratio and totals at any time.
  • Instant visibility via great looking graphs for your whole portfolio.

Portfolio Graph

Portfolio equity graph

Instantly see the current status, using your current mortgage balance and latest valuation, of your portfolio wide borrowing.

Above is a sample of one of the graphs you’ll see in your dashboard once you’ve started adding valuation and mortgage data to your properties. In your dashboard you can hover over either segment to see the monetary value of your borrowing or equity.

Mortgage Reminders

Every property in PaTMa has a space to store current mortgages or other loans you’ve taken out against it. Simply set the “fixed rate end date” and PaTMa will automatically email you three months before it’s due to expire.

You’ll have plenty of time to evaluate the impact of the mortgage reverting to a standard rate (we’ve got some exciting tools coming out soon to help with that). If you decide to find a new deal, you’ll still be in time to get in touch with your mortgage broker.

Valuation History

You can store as many valuations as you like against each property. So you can keep it updated as things change or go back and fill in your property’s history. Either way you’ll be able to easily see how your investment value has changed.

You can also see a visual representation of how each property and your entire portfolio has performed over time. Great for spotting trends and getting an idea of where the future may be heading!

More Great Features

PaTMa is full of great features to save you time and money when managing your property investment portfolio. For a limited time, get a lifetime 10% discount on any PaTMa subscription if you sign-up before the end of June 2018 and use the discount code SPRING2018.

Generate and check your tax figures – landlord tax return with PaTMa

You can use PaTMa to simply track all your landlord finances and it comes complete with a tax return report to help with your self assessment.

This article is the last part of a series guiding you from an empty account, through entering all the data required, to PaTMa calculating your landlord tax return figures.

You can find the other parts here:

Part 1 – Creating your properties
Part 2 – Adding tenancies and adjusting to ignore the past
Part 3 – Recording rent payments
Part 4 – Recording mortgage interest
Part 5 – Recording other expenses
Part 6 – Generate and check your tax figures (this post)

What you’ll get

The key income and expense figures suitable for use on your HMRC self assessment property pages.

What you need

You’ll need to have completed all the previous parts of this guide (see above for links to each) and have records on hand to review your details.

What to do

You’ve done all the hard work, now it’s time to enjoy the results. Just a few clicks stand between you and all the basic (for most buy-to-let landlords) self assessment property tax figures.

Get started by clicking “Tax Reports” on the navigation above your property listing page. You’ll be presented with a form to select the tax year you’d like a report for:

Tax report form

Simply select the relevant year and click “Create Report”.

A few seconds later you’ll be presented with the tax report for your portfolio in the chosen year. It should look something like this:

Tax report screenshot 1

The figures shown should be ready to copy and paste into your HMRC online tax return.

Just before you do though, we recommend that you take advantage of the little magnifying glass icons to expand each of the report sections and verify that the transactions included match your expectations.

Here’s a quick example of a tax report with a couple of the detailed lists open:

Tax report screenshot 2

Use the dates, descriptions and amounts displayed to check for any typos or other mistakes. It’s a good idea to quickly reconcile the transactions shown with your bank statements.

Once you’re satisfied everything is in order, head over to HMRC and fill in your self assessment.

 

Please note: these tax return calculations are entirely dependant upon the data entered and it’s accuracy. It’s critical that you check the results yourself (use the per-item quick expansions to see the data behind each total). If you’re in any doubt at all we strongly suggest that you seek professional advice. (We recommend Paul Samrah, partner at Kingston Smith, who can be reached on 01737 778546 or email: psamrah@kingstonsmith.co.uk.)

 

What next

That’s it! You’re all done.

Recording other expenses – landlord tax return with PaTMa

You can use PaTMa to simply track all your landlord finances and it comes complete with a tax return report to help with your self assessment.

This article is part of a series guiding you from an empty account, through entering all the data required, to PaTMa calculating your landlord tax return figures.

You can find the other parts here:

Part 1 – Creating your properties
Part 2 – Adding tenancies and adjusting to ignore the past
Part 3 – Recording rent payments
Part 4 – Recording mortgage interest
Part 5 – Recording other expenses (this post)
Part 6 – Generate and check your tax figures

What you’ll get

After this part of the guide you’ll have all your property expenses recorded. In fact you’ll have everything recorded that you need to generate your tax return figures (see Part 6 for how).

What you need

  • Invoices
  • Receipts
  • Credit card statements
  • Bank statements
  • And anything else that shows your property expenses for the year

What to do

If you can, I recommend grouping your expenses per property before starting to enter them into PaTMa. This will save you some clicking between screens and it will also make it easier for double checking your paper records against the (per property) expenses list in PaTMa.

Don’t worry if you’d rather enter everything in date order, for example working through credit card or bank statements. Just make sure you click into the relevant property for each expense.

Here’s the basic process to record each property expense:

  • From the property list…
  • Click the appropriate property image
  • Open the property menu
  • Click the “Add expense” menu item

Here’s what the menu will look like:

Menu to add expense

Alternatively:

  • On the property detail screen, scroll down a little to the “Recent Expenses” section
  • Click the “Add Expense” link just under the table

Once you’ve selected Add Expense by either method, you’ll see a form that looks like this:

Expense form

Most of this form should be self explanatory, but there’s one field that’s especially important – Tax category.

You need to make sure that you allocate each expense to the correct tax category, otherwise you may end up paying too much tax (or too little!). There’s lots of information and guidance on property expenses on the HMRC site.

Getting the tax category right for these expenses is probably the most important part of this entire process. If you’re in any doubt at all we strongly suggest that you seek professional advice. (We recommend Paul Samrah, partner at Kingston Smith, who can be reached on 01737 778546 or email: psamrah@kingstonsmith.co.uk.)

 

Make sure you fill in the supplier name as this is visible in summary listings and I strongly recommend making the description as detailed as you can so it’s easy to understand in the future.

If you’ve got an electronic copy of the invoice or receipt for the work, you can add that using the “Document” field so it’s always available for safe keeping (or any future tax inspection!).

Click “Save” to complete the process (or “Save + enter another” to enter another expense for the same property). Then repeat for each of your property expenses.

What next

Congratulations! You’ve entered all the information needed to generate your landlord self assessment tax figures. Click through to the final part of this guide to see how to view and check your landlord tax return.

Recording mortgage interest – landlord tax return with PaTMa

You can use PaTMa to simply track all your landlord finances and it comes complete with a tax return report to help with your self assessment.

This article is part of a series guiding you from an empty account, through entering all the data required, to PaTMa calculating your landlord tax return figures.

You can find the other parts here:

Part 1 – Creating your properties
Part 2 – Adding tenancies and adjusting to ignore the past
Part 3 – Recording rent payments
Part 4 – Recording mortgage interest (this post)
Part 5 – Recording other expenses
Part 6 – Generate and check your tax figures

What you’ll get

After this part of the guide you’ll have all your mortgage interest payments recorded and your PaTMa graphs will really be getting useful.

What you need

  • Mortgage (or if necessary, bank) statements showing the mortgage payments you made.
  • If you have any repayment mortgages you’ll also need to know how the payments are split between interest and capital repayments.

If you’ve got a property portfolio without any mortgages, you can skip ahead to part 5 to start recording other expenses.

What to do

Working from your mortgage statements is probably going to be easiest for this process as they will likely be per-property and will show your interest.

So on that basis, choose you first mortgaged property and follow these simple steps to get started.

  • From the property list…
  • Click the appropriate property image
  • Open the property menu
  • Click the “Add mortgage payment” menu item

Here’s what the menu will look like:

Menu to add mortgage payment

You’ll then be presented with the mortgage payment form (which is a cut-down version of the expense form). Here’s what it should look like:

Mortgage form

This form must be used only for mortgage interest, you can add any repayment mortgage expenses in the next part of this guide.

With that in mind, select the appropriate date for the first payment on your mortgage statement, choose the payment method (most likely “bank transfer” which covers standing orders and direct debits), enter the amount and the name of the mortgage provider.

While you’ve got more payments on the same statement, click “Save + enter another” to get a head start on the next entry. Make sure you remember to set the next date and update anything else that’s different on the next payment.

On the last one for the property click “Save” to return to the property view. Don’t worry if you forget and click to enter another, you can use the menu at the top to navigate back to the property view at any time.

Once that property is complete, click “Property List” at the top of the page to view your list and choose the next mortgaged property. Just repeat the same process to enter the mortgage interest.

Bonus

While you’ve got your mortgage statements in front of you, why not store a few extra details about them. PaTMa can then use these details to improve the statistics and other information presented about your portfolio.

Click into the appropriate property detail page and scroll down almost to the bottom. There’s a section labelled “Mortgages” – just click “Add Mortgage” to see a form like this:

Mortgage details form

Just fill in the details and click Save.

From the property detail page, scroll down again and this time click to “Add Valuation” – it’s just above the mortgages section. Fill in that form as well and you’ll enable insights on the value (and equity) of your portfolio.

What next

With mortgage expenses done, entering your other expenses in the next part will be super quick.

Recording rent payments – landlord tax return with PaTMa

You can use PaTMa to simply track all your landlord finances and it comes complete with a tax return report to help with your self assessment.

This article is part of a series guiding you from an empty account, through entering all the data required, to PaTMa calculating your landlord tax return figures.

You can find the other parts here:

Part 1 – Creating your properties
Part 2 – Adding tenancies and adjusting to ignore the past
Part 3 – Recording rent payments (this post)
Part 4 – Recording mortgage interest
Part 5 – Recording other expenses
Part 6 – Generate and check your tax figures

What you’ll get

Completing this article will mean you’ve got all your property details entered (covered in part 1) and recorded all the tenancies covering the tax year.

What you need

  • Bank statements or other rent records showing all tenant payments

What to do

In this part of the process the objective is to record all of the rent payments you received, matched up to the tenancy that you received them for (that you created in the previous part).

There are several ways you can record rent payments in PaTMa but this article is going to focus on just two of them. Which one you should choose depends on whether you want to work through your bank statements one tenancy/property at a time or whether you want to work through all payments in date order.

If you’re able to, working through them one tenancy at a time will be faster so that’s the method we’ll look at first. Scroll down if you’d like to enter each rent payment in date order across multiple properties.

Pick the tenancy

Choose the tenancy that you’re going to record rents for first. Navigate to the tenancy from the property list:

  • Click on the property image
  • Click on the “View” link next to the active tenancy

If the tenancy is no longer active, then click the “List all” link under the active tenancy list and then choose the tenancy from the full list for that property.

Enter rent payments

When viewing the tenancy detail page you’ll see the rent record lower on the page. It will list all outstanding payments.

Rent record outstanding

Every outstanding payment will have a “+” icon on the right hand side.

Work through your bank statements and starting with the oldest outstanding rent that you received, click the “+” next to it.

This will take you to the page to record a rent payment and it will pre-fill it with the due date and the amount due. Make sure you update these values to match what’s on your bank statement.

Click “Save” to record the rent payment.

You’ll be taken back to the tenancy detail page, with an updated rent record, ready to click the next “+” for the next rental payment.

Repeat this process until your rent record is complete for this tenancy. Then return to the property list and select the next property and tenancy to update.

Date order, mixing tenancies

It might make more sense for you to work through your bank statements in date order and record rent receipts across all your properties in the order they happened.

If that’s the case, here’s the quickest way to do it.

Start at the property listing page. Having entered all your tenancies in the previous part of this guide, the listing page will be showing overdue rent alerts for each tenancy. They’ll look something like this:

Overdue rent alert

Start at the beginning of your bank statements (remembering to go back to at least the last rent payment that happened before the new tax year) and find the first payment.

Then locate the corresponding tenancy alert on the property listing and click the “Add rent payment” link.

You’ll be taken straight to the rent payment form where you’ll need to complete the date you received it and how much it was.

Click “Save” and then click “Property List” near the top left to get back to the list of alerts.

Find your next rent receipt on your bank statements and repeat the process.

Bonus

While you’ve got your records, why not record all your rent receipts right up to the present day. Once you’ve done that you’ll start to see the PaTMa graphs come to life.

Each of your properties has a small financial summary graph, having just entered the rent it might look like this:

Monthly graph with only rent receipts

Make sure you click on the “Dashboard” too, especially if you’re got a portfolio of properties. With rental data entered you’ll start to see some great information there.

Carry on to the next part to start adding expenses and really visualise your property portfolio performance.

What next

With the income covered, it’s time to start recording your mortgage interest in the next part.

Just in case you’ve got a property portfolio without any mortgages, you can skip ahead to part 5 to start recording other expenses.