Other income section on tax return

Hi Matthew,

The development on the Other Income section is complete, however, we are just waiting for HMRC to switch it on for us.

I will let you know once this has been enabled.

Tommy

Hi Matthew,

The Other Income Section has now been enabled.

Tommy

Hi Tommy, thank you for confirming the other income secction has been enabled. I have opened the link, but it does not have the other income category that I wish to enter. On previous tax returns, I have entered the other UK income in box 17 of SA100 and the associated tax already deducted in box 19 - see below image (with ficticious figures)

Can you advise where this other income entry can be made in clearbooks so that it appears in the correct place in my tax return?

Thank you

Matt

Hi Matt,

Under the new MTD, there is no equivalent of box 17, and unfortunately, there is no HMRC guidance for this. If you can describe the income and tax deducted, We may be able to ask HMRC where this should now be entered.

Tommy

Hi Tommy,

The other income relates to sums paid to me by my former partnership (from which I retired in 2020. There was an agreement for the partnership to continue to pay me a set percentage of its profits for a set period although I am no longer a member of the partnership. For the tax years 2020/21 up to 2024/25 this income was declared in Box 17 and the withholding tax declared in Box 19. A description of the income was then provided in the notes box at the end of that section of the tax return, where it was described as an annuity.

Kind regards

Matt

Hi Matt,

Thank you for the additional information. We will send this to HMRC to get some direction on it.

I will keep you updated.

Tommy

Hi Tommy

Has there been any update on this query?

Matt

Hi Matt,

Unfortunately, we've not yet had a response from HMRC. However, we do have a call with them tomorrow and will query this. We have also chased up on this via email.

I will keep you updated.

Tommy

Hi Tommy, As a matter of interest, I have just gone through the process of filling in my tax return information using the HMRC online system. This still includes boxes 17 and 19, as shown in the below image. Can I use this method for submitting my tax return, or do I need to do it using the MTD system?

Hi Matt,

You can only submit an MTD tax return for tax years where you are signed up to MTD. HMRC are still looking into where partnership annuity payments should be entered under MTD.

Tommy

Hi Matt,

Unfortunately, HMRC have responded with a similar answer, please see:

'The functionality has not yet been delivered by MTD. Where a customer needs to report entries for these boxes under MTD these will need to be provided in writing.'

We will try to find out the most efficient way of providing the info and whether that will somehow be included in the MTD tax calculation or if it will be adjusted after finalisation.

I will keep you updated.

Tommy

Thanks Tommy. Having taken the plunge with the digital service its a bit disappointing to find out that it is not fully implemented although I appreciate that this is HMRC's fault. I remain keen to get my tax return completed and will await further updates.

Hi Matthew,

Thank you for your patience. HMRC have confirmed that the MTD Tax return should be finalised first and you will need to provide in writing to HMRC the entries for those boxes, then they will adjust the calculation manually afterwards.

Tommy