Mtd for tax query: do I need more than one licence?

Support
1

Will I need more than one licence to record my income from cis as well as rental income under the new making tax digital for tax rules?

2

Hello @ltbbookworks

You would only need 1 account.

You can have multiple income streams reported on your MTD ITSA return (e.g. sole trader and a property rental). the income would be recorded to different sales income codes.

3

what about income under cis - i read that this is not included on hmrc’s list of software

4

following on from my question re income for subcontractors. The following exert confirms that mtd compatible software……Impact on CIS Subcontractors

For subcontractors specifically:

  • CIS Deductions: Your MTD-compatible software must be able to accurately track the 20% (or 30% for unverified) tax deducted by contractors from your payments. This makes it easier to track potential overpayments and claim rebates.

I use quickfile for one subcontractor (currently) and was hoping to bring more onboard but wonder if I won’t be able if the functionality to track cis deductions is not present?

5

Hello @ltbbookworks

This may answer your query

You can easily query the “CIS Paid ” nominal account mentioned in the last step to see all your deductions for a given period.

https://support.quickfile.co.uk/t/cis-subcontractors/12095#5._completing_your_self_assessment_tax_return_(sole_traders)

6

thats great. I do something similar in that i tag the net amount to the invoice and pay the balance to the cis deductions bank account but leave the balance to increase. Would this still be ok to process this way?

7

Hello @ltbbookworks

Yes, thats what the steps in the article outline.

8

actually I tag the net bank receipt in the current account to the invoice and the deduction is tagged to the cis ddn bank account. Would I need to clear the running balance to the cis paid nominal, if I stick with my way or go with the new process?

9

Hello @ltbbookworks

It is up to you where you wish to show the CIS on you balance sheet.

If you leave it as a bank it would show in the 12xx range and recording it as the article suggest would show it in the 22xx range.

10

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