Problem reported by Ian Templeton 2 months ago
What is the best way to manage expenses when shared across multiple properties? For example a subscription or internet fees are not dedicated to one property in a portfolio they are shared. It is not practical to split these across several properties.
Hi Ian,
When managing multiple properties within a Clear Books Property plan, it is helpful to keep in mind how HMRC views your portfolio for Making Tax Digital (MTD). For income tax purposes, all of your UK property income and expenses are reported together as a single income source.
Because of this, you do not necessarily need to split every single bill between individual properties if that is not practical for your business. For overheads that cover your entire portfolio, such as internet fees or professional subscriptions, you can simply record these as a single entry.
To record these shared costs, you can use the record expenses button on your dashboard. When entering the details, select the most appropriate account code, such as internet or subscriptions. You can leave the description general or use it to note that the cost applies to the whole portfolio.
If you are using a bank feed or importing statements, you can explain the transaction directly from your statement using those same account codes. This will ensure the expense is captured in your profit and loss report and included correctly in your quarterly updates to HMRC without the need for complex manual splits.
You must 