Vehicles or equipment purchased through Chattel Mortgages and Hire Purchase Loans agreements are calculated differently from normal bank loans, so we have added a simple interest loan calculator to ensure interest is claimed correctly.
Step 1: Add your loan
To add a Chattel Mortgage or Hire Purchase Loans, navigate to Work Tank → Loans, then click Add Loan.
In the loan setup, complete the following:
Loan type: Select Hire Purchase or Chattel Mortgage
(Note: there is also the option to choose Auto loan or Bank loan, however these loan types will redirect you to the bank feeds page to link the bank.)Annual interest rate (%)
Commencement date
Loan amount (excluding interest)
Number of payments (commonly 60 for 5 years, but may vary)
Frequency (weekly, fortnightly, monthly)
Payment instalment amount
Click Calculate Payments to generate your repayment schedule.
Step 2: Review the repayment schedule
Click the Payments icon to view the full breakdown of:
Principal repayments
Interest repayments
Use the arrows to move through the schedule, then click OK to close.
Once confirmed, click Save.
The schedule will then display in the relevant financial year, and better still, we will create a rule to automatically apply the principal and interest components when you allocate the repayment from bank feeds.
Step 3: Allocate your repayments from bank feeds
When your loan repayments come through in bank feeds:
Select either Vehicle loan – Interest or Vehicle loan – Principal when allocating
It doesn’t matter which one you choose
TaxTank will automatically match the repayment to your loan schedule and correctly split the interest and principal components for you.
Important notes
You can’t create a bank rule for these repayments as the split between interest and principal needs to be confirmed against the loan schedule each time
You only need to select one of the loan categories when allocating, TaxTank handles the rest and ensures your interest is claimed correctly
Example
If you’ve set up a chattel mortgage for a vehicle and your repayment is $252.47 weekly:
Allocate the transaction using either loan category
TaxTank will match it to the schedule and split the amounts automatically