VAT return for self-employed

Support
1

Can someone help me… I’m self employed and do self-assessment and also charge VAT. I used to use Quickfile solely for the VAT - login my sales, every quarter, pay the bill, very simple.

Now this damn MTD means I’ve got to do all my self assessment with Quickfile. I do not find it easy. I own two rental properties - where I don’t receive any VAT on the rent. I have to now log invoices for property with Quickfile.

I’m preparing this month’s VAT and it includes the rental invoices in all my sales, so it means my VAT amount is way higher than it should be for the quarter. There’s got to be a way of dividing my property invoices from the category of ‘all sales’. Currently, I can’t send off my VAT return for the quarter as the figure includes my rental. It already has its own Landlord/property section for MTD, but not for VAT.

I don’t find Quickfile very helpful since moving to MTD.

Any help, gratefully received.

Thanks,
Chris

2

Hello Chris

There are 2 ways to account for this

  • Mark all the rental invoices as out of scope

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Or

Ideally keep your property business records separate all together (as per MTD Account Configurator) in a separate QuickFile account. This way one business does not affect the other.

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.
  • 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.
3

Fantastic Steve thank you - I’ve already submitted my first MTD Q1 to hmrc and had separate property section within same quickfile account. So do you think it best to carry on like this and use the out of scope, thinking a bit of a faff to now set up a new account one-quarter of the way through the financial year?

4

Hello @chriswhite

So do you think it best to carry on like this and use the out of scope, thinking a bit of a faff to now set up a new account one-quarter of the way through the financial year?

Its your decision I’m afraid, we (the support team) are not registered accountants and can not give financial advice.

In terms of processing what you have described either method would work, if you are unsure it may be worth running it past your accountant.

5

Thanks Steve, all sorted, what a faff it all is. Thanks Starmer

chris white
journalist - photographer
thisischriswhite.com