Question asked by Allen George Harry Meikle Cochran 24 hours ago
I have property income and have downloaded the Property version of CB. I wish to record income from shares, state and private pensions, income from Unit trusts etc. Can I add the correct accounting codes so that I can submit an end of year tax return using CB? I am not due for MTD as yet.
Hi Allen,
For the Property account, you should only record the property income and expenses for your quarterly updates.
For any shares, state and private pension and other income, this must only be included at the year end on the MTD Tax Return account. You can open one by hovering over your business name at the top right > Add MTD Tax Return.
Tommy
Best answerI have linked in to HMRC. However I do not see how to explain bank account entries for other income. Do I have to add accounts?
Hi Allen,
The MTD Tax Return won't have anything to show until you have done at least one quarterly submission. HMRC will only generate something after quarterly update has been submitted.
For the "other income" on the bank feed, these will all need to be marked as personal transactions, or coded to drawings, as they are not property income. There is no requirement to keep digital records for anything but property and self employment business transactions, please see HMRC's guidance here.
Tommy
I am aware that only property transactions are required. I was expecting to be able to explain other income using CB so that at the close of the tax year I would have picked up all such transactions on a monthly basis. Does the paid version do this?
Hi Allen,
State pensions and private pensions will be pre-populated on the MTD Tax Return as HMRC will already hold that information. MTD Tax Returns are not capable of reporting Trust income. If an individual has income from trusts, they are excluded from MTD for Income Tax until HMRC have added that capability to their platforms.
Tommy
Thanks, Tommy. Should I generate account codes for any other income? I assume if I do so on a monthly basis the CB will give me a tatal for each which I can use at the year end?
Hi Allen,
No problem and yes, you can create new account codes in the drawings account type if you want to categorise the non-business income this way.
Tommy
You must 