Just signed up to Quickfile as I feel I should prepare for MTD in 2023.
My wife and I are landlords and own 50% of the properties each and I would like to know how I/ we would enter the income from the three rentals (our total income is just under £20k pa). Should I enter the whole 100% of income and the total outgoings etc in to this one account? How, when we come to submit the MTD statements to HMRC do we split this for each self assessment?
It is easy at the moment as we do everything via Excel and simple spilt the numbers.
No one really knows how Mtd for income tax will work yet. So this is all guess work.
But if we follow the process as before then you would record 50% of the rental income and expenses. However you have said that the total income is under 20k.
The requirement for Mtd is anyone who’s turnover is above 10k so if when split its lower than 10k there’s no need to implement Mtd.
Although our total rental income is less than the £20k at the moment with increases that will not always be the case, I understand that MTD is still an unknown item at the moment but am trying to get some time playing with the system.
I am looking to make the transition to QuickFile (from Excel) so that we will be ready for the inevitable date and so I guess my initial question was poorly phrased.
Can/ does QF allow for my wife share of the property income be taken into account when I submit the final year accounts, as the income I am to enter into QF is not all my own. We do have other income from other sources which are under PAYE systems. Thanks to anyone for guidance!
I’m afraid I don’t have an answer for you. I can assure you as an accountant we are in the dark as much as you are.
I can’t even say if you should include your other sources of income or not, as I don’t even know what the reporting requirements will be. It might be just the rental details, it might be both.
As it stands right now, you don’t enter your other sources of income in to quickfile, it’s a separate thing you add to your self assessment, this might change under mtd. But right now there is no where to do this.
I’m afraid you will most likely need two quickfile accounts to split the shared income and expenses. One account will not enable you both to submit your individual details.
Feel free to create two accounts now to test how the normal method of recording transactions works, but by no means rely on this as an example of what’s to come, because it most likely won’t be.