Hello, using the search feature I found this topic on record-keeping as a sole trader and private landlord. The advice seems to be to keep records separate (I have one rental). But since this post was a few years ago I wanted to double check that this is still the case and would you advise setting up two separate QuickFile accounts (one for soletrader income and one for landlord income) to deal with each line of income with different email addresses?
I’m a little concerned as when HMRC bring in MTD for ITSA I’m wondering how it possible to submit tax returns for both lines of income into one self-assessment account. I imagine the calculations will be skewed in terms of the tax calculations on each of the returns since they won’t be taking account of one another (ie first 12k of income is tax free etc).
It says: “If you have other sole trader business activities we recommend you manage this under a unique QuickFile account. We will create your new landlord account with a set of nominal codes suited for property management.”
So I guess that answers my first question, but the second part, when MTD for ITSA comes in, does anyone know how they will be able to calculate the amount of tax they think I will be due given that I have two separate accounts? One for sole trader and one for landlord? Obviously the landlord income could push me into the higher rate tax band, and also the second account won’t know that my first £12,800 tax free band has already been used by the first account. I wonder if HMRC have really thought all of this through as QuickFile does not seem to be unique in struggling to deal with the second line of income from landlords?
Separate MTD periodic update will need to be filed for your self employed business and your property activities so having two accounts would makes sense.