How many Clear Books accounts needed for shared property income

Question asked by Phil Abbott 3 weeks ago

Hello to the forum,

I am researching the changes to come and I understand the premise behind MTD and that we will need to make the records we already keep in excel available to HMRC on a quarterly basis which then becomes the annual return. As opposed to the fact to date we have provided this spreadsheet tot he accountants annually and let them get on with it.

My query is around the use of this software when the property portfolio is shared between multiple people. In my case everything is 50/50 with my wife. I am trying to understand if we require one ClearBooks account or 2 accounts.

Do you have one account with multiple people listed and then input effectively the same figures into both? or Do you have to have two ClearBooks logins and input the details into both?

Also, if needed for info both people will have additional details at the end of year for the tax return such as pension and interest so at the end of the year there will then be variation on the tax computation for each person.

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4 Replies

Hi Phil,

For jointly owned property, each owner will require their own separate Landlord account. Digital record keeping requirements are simplified, which should make the process easier for you.

Here is a breakdown of how you should handle the income and expenses for your separate digital self-assessments:

Digital Record Keeping for Jointly Owned Property

Since the property is jointly owned, you are only required to record and submit your own share of the property income for your quarterly updates.

To keep things simple, we suggest using the manual entry method ("Record income" and "Record expenses" buttons) instead of importing bank statements.

You can make a single digital record entry for the total of your % share of each income category and a single entry for your % share of each expense category for the quarterly period.

For Jointly Owned Property Expenses, you can choose to record your % share of expenses quarterly using the "Record expenses" button. Alternatively, you can choose to enter your share of all jointly owned property expenses once during the year-end MTD tax return process. Please refer to HMRC's guidance here: https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates

For the year end, you will need to open a MTD Tax Return account with us to input all other income sources, reliefs and expenses. Property income figures will be automatically consolidated into your MTD Tax Return account.

Tommy

Best answer
3 weeks ago

Hello Tommy,

Thanks for your swift reply.

You have confirmed what I felt might be the case in that both my wife and I will need a ClearBooks login each and then records our relevant section of the property income.

As a follow on from what you said about the MTD tax return. For my clarity all this is contained with the free software and is on the main dashboard as circled.

So, when you say I would need to open an account with you.

You are referring to a free account (of whcih we need one each) and these would provide us all the functionality needed to start doing this next April?

file

3 weeks ago

Hi Phil,

The highlighted MTD for income tax widget is to send the Quarterly Updates. If you hover over your account name at the top right > Then click Add MTD Tax Return, this will enable you to submit the final declaration at the year end. Both the quarterly submission and year end submission are included in the Free plan.

Tommy

3 weeks ago

Thanks Tommy, much appreciated.

3 weeks ago

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