I have one UK property business and one foreign property business for MTD ITSA. The same nominal accounts (e.g. Rent Income, Repairs & Renewals, General Rates) naturally apply to both businesses. QuickFile reports these as mapping conflicts when I assign the same nominal codes to both UK Property and Foreign Property. Is this expected behaviour? If so, what is the recommended approach—duplicate nominal accounts, separate QuickFile accounts, or another method?
Hello @Stephen_Devlin
HMRC wants these reported on separate cumulative updates.
To do this in one account your would have to use different nominal codes for the postings for UK Property and Foreign Property which will allow you to in turn map the nominals for the cumulative updates.
Although it is technically possible to file both a sole trader business and a UK property business and Foreign Property business from a single QuickFile account using nominal code mappings, this isn’t the approach we recommend.
If you have three distinct taxable income sources, each should ideally be maintained in its own separate QuickFile account. This keeps the bookkeeping records completely separate, makes reporting much clearer, and reduces the risk of transactions being allocated to the wrong income source.
The MTD filing process would then be:
- Submit the Cumulative Updates for your sole trader business from the sole trader QuickFile account.
- Submit the Cumulative Updates for your UK property business from the property QuickFile account.
- Submit the Cumulative Updates for your UK property business from the property QuickFile account.
- Complete the Annual Summary for each income source from its respective QuickFile account.
- Once both Annual Summaries have been submitted, complete the Other Income Sources section and submit the Final Declaration from one chosen main QuickFile account.
As the additional QuickFile accounts would being used to submit MTD updates, they would require their own Power User subscription.
Alternatively you could combine the UK and Foreign property into 1 account (separate nominals) and use the mapping and just have the self employed business in a separate account.
If you have an Affinity account, you can manage both QuickFile accounts from a single login, making it easy to switch between them while keeping each income source separate. (edited)