Hi I have just remortgaged a rental property and raised capital for my business/Ltd Company. I am trying to tag the amount shown but not sure what to tag it under. Do I just put it as a payment from a supplier (mortgage company being the supplier) or is it better to tag as something else and if so what and where do I find this. Sorry if this seems a bit of an obvious question but new to this.
Hello @Riposante
You may be best to speak to an accountant to see where you should be tagging this capital to.
I can only give limited advice as I am not a registered accountant nor bookkeeper.
Is the rental property owned by you personally or through the limited company?
it is owned in a limited company
The normal advice for dealing with loans (which is what this is, nothing special about it being a re mortgage as opposed to a new purchase) is to create a loan account in the bank accounts section and tag the money you receive as a transfer from the loan account. This leaves the account overdrawn by an amount that represents your liability to the mortgage provider.
When you make repayments those are transfers the other way (to the loan account, reducing the outstanding balance) and when you are charged interest you create money out transactions on the loan account tagged to an appropriate expense nominal (which increases the outstanding balance).
But I would still check the detail with your accountant to make sure everything is correct.
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