When you create a new Cumulutaive Update QuickFile will categorise your income and expenditure based on preset mapping rules. This will assign each nominal code to a specific HMRC reporting category. A separate set of mapping rules can be used for both self-employment and a property business.
You can view and update your mapping rules in the MTD settings area. Just follow the link Self employed nominal account mappings. You can also access the mapping rules directly from your draft cumulative update report.
By default we will apply a standard set of rules, you can amend these as you wish. For a self-employment business there are approximate 2 income categories and 16 expense categories.
If you want to customise your rules you can simply expand each reporting category and add or remove nominal assignments.
Any nominal accounts not explicitly assigned to a reporting category will be allocated to a default income or expense reporting code.
Disallowables
You may wish to categorise some expense categories as “Disallowable”, any postings to these nominal accounts will be reported separately in your cumulative update report. When adding a new nominal assignment, simply check the disallowable box before saving.
When a nominal account is marked is disallowable any associated balance will be reported in the main expense column then reversed back off in the disallowable column.