I have a Buisness bank account for my sole trader personal training Buisness, I also have a private rental which pays the rent into the same bank account. I’m trying to prepare for MTD so Can I still use one bank account for both incomes or do I need to open a second Buisness bank account to keep rental income separate?
Hello @matthew_young
You can use the same account if you wish.
When processing the rent invoice and your income invoices from the sole trader business use separate sales nominal codes for the 2 income streams as the new MTDITSA features will look at this to do the quarterly returns
Thank you so much for your help and for such a detailed reply.
The letting agency manage my rental so the tenants pay them direct and the letting agency transfer any remaining monies to my account minus management fees and any other deductions from the month for maintenance etc
So as I don’t actually send any invoices for rent how would you go about showing this isn’t income from my personal training when the rent money goes into my Buisness account each month?
Many thanks in advance for any additional support you could provide
Hello @matthew_young
You would do this with a merchant account.
Tag the income from the letting agent as a transfer to from the merchant account, log the invoice receipt and purchase payment (fee) on the merchant account (it would net off to zero).
Just be sure the sales and purchase code are different to codes used for your other business
https://support.quickfile.co.uk/t/handling-payments-from-merchant-accounts/8865
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