Hi Quickfilers. I’m new to Quickfile and investigating using it or MTD (Making Tax Difficult).
I am a sole trader for my main business activity (Audio Visual) and flat rate VAT registered. If I also have a Buy To Let Property which is not included within VAT how does that work? Is there a way of telling Quickfile not to charge VAT on some invoices or do I need two accounts? If I have two accounts how does that work with MTD, will they talk to each other about the tax return?
As far as i am aware, your rental income should be included in the flat rate calculation! Sounds crazy, i know.
Speak to your Accountant about this.
As for MTD … rental income is to be submitted separately to self employed income. You have it correct as Making Tax Difficult.
So here’s the bizarre thing. When I became flat rate I rang the VAT helpline and they told me that all my business activities, including my BTL were covered under the flat rate scheme so that’s what I’ve been doing for the last 10 years. I have never used an accountant.
As part of my investigation into how to comply with Making Tax Difficult I spoke to an accountant who said it should be outside the scheme…! So now more confused than ever 
Hi @Peterward ,
The VAT Notice clearly states that as a sole trader, your BTL income should be included in Flat Rate calcs. Sounds like you’ve been doing this correctly.
Going forward into MTD in 2024, my understanding is that self employed income and BTL Income have to be submitted independently of each other each quarter to HMRC.
Perhaps another Accountant on the community can confirm this.
How do I enter expenses for my BTL in Quickfile? I can’t find any categories for property related expenses?
I don’t understand how Quickfile will know what’s to do with BTL and what’s to do with my self employed activities. If I have to manually enter this information on my tax return then how am I ever going to comply with Making Tax Difficult?
I have no idea if this will help you, but it may point you in the right direction…
For my business I have two very different income sources. In order to track expenses and income for each one I use Project tags. By doing this each one appears separately in Projects and each has it’s own mini P&L report.
https://support.quickfile.co.uk/t/projects-in-quickfile/8858
For the business as a whole both wrap up into the master P&L and other reports.
1 Like
Thanks, I’ll take a look.
My affairs are very simple, I don’t really need any reports. I checked and I only fill in 7 boxes on the self assessment tax return using the information I get from my existing Excel spreadsheet. I just can’t see how I can get Quickfile to do the same thing.
You can create your own codes for expenses, or use the existing ones, and then do a report (or just look manually) at those ones when looking at your income.
e.g. I have rent income as a ‘supplier’ as well as a Chart of Accounts category, and ‘repairs and renewals’ is used for my BTL. If you have expenses such as utility bills for two properties (e.g. main business and your BTL) you can create categories to put them in separately, e.g. gas rental, gas business or whatever. Basically you can craft your own chart of accounts in addition to the existing categories to make it work for you. Not sure if this hugely helps with the tax return in detail but it’ll set out the income streams more clearly.
Sorry, Rent income as a CLIENT
This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.