Is Finance costs being recorded correctly?
Posted: Fri Aug 17, 2018 3:31 pm
by christop10
It seems that when you record finance cost expenses at the moment, they are being recorded in the property purchase account, and therefore as a capital expense. However I thought costs associated with financing could be / should be recorded as a revenue expense?
Thanks
Re: Is Finance costs being recorded correctly?
Posted: Wed Aug 22, 2018 5:19 pm
by roy
Hello
Thank you for contacting support
We have recently made the following changes to Landlord Vision
1. Re-assigned the following items from the 'Property Buying Costs' asset account to the 'Finance Costs' (expense account):
- Mortgage arrangement fee
- Mortgage broker fee
2. Created an additional item called 'Incidental costs of obtaining finance' assigned to the 'Finance Costs' account. This item will cover all of the other possible finance costs as per HMRC's Business Income Manual BIM45815.
Please review your relevant expenses and adjust as necessary
Kind regards
Roy