Joint Property Ownership

Hi Allen,

Under MTD for Income Tax, you are only required to submit your individual share of the property income and expenditure.

For a simpler experience, we generally recommend using the "Record income" and "Record expenses" buttons for jointly owned property and record the quarter totals, as this removes the need to worry about bank feeds entirely.

However, if you choose to continue using bank feeds, here is how to handle the splits for both scenarios:

1. Recording Income Since your wife receives the full income into her account, and you only need to record your 50% share, you will need to "split" that incoming transaction on the bank statement.

The process is as follows:

Explain the Receipt: On the imported bank statement, find the rent receipt and click on it to explain it.

Record Your Share (50%): You will manually change the amount of the transaction to reflect only your 50% share. This amount is coded to the correct "Rental income" account code.

Record the Remainder (50%): The rest of the money (the remaining 50% which belongs to your wife) must be accounted for as a "Drawings" transaction from your business. This correctly reflects that you are only claiming your half as income.

2. Recording expenses

Since the expenses are paid from the joint account, you again only need to record your 50% share.

Split on the Bank Feed (Recommended for Accuracy) Explain the Payment: On the imported bank statement (from the joint account), find the payment and click on it to explain it.

Record Your Share (50%): You will split the transaction. One part (your 50% share) is coded to the relevant Expense Account (e.g., "Repairs and maintenance").

Record the Remainder (50%): The other part (your wife's 50% share) is coded to the "Drawings" account, as this money is coming out of the business for a non-business purpose (your wife's share of the expense)

Tommy

Tommy, thanks for that. Think CB needs to point this out to prospective customers.

How do I remove all bank feed transactions? Should I reset the account and start again manually? Will this completely remove all the links to my bank accounts?

Will this completely remove all the links to my bank accounts?

I see that it has unlinked my HMRC link

Hi Allen,

Yes, this will reset the whole account including the bank feeds. You can re-link MTD for Income Tax.

Tommy

It would be great if it could handle a split in the platform. If I have to manually update each transaction and record it twice (once for my wife and once for me) this seems like a lot of work. If the platform could handle the concept of a rental property and define a split, I think this would be a huge advantage.

Hi Ian,

For a simpler experience, we generally recommend using the "Record income" and "Record expenses" buttons for jointly owned property and record the quarter totals, as this removes the need to worry about bank feeds entirely.

Our Product team are looking to introduce a paid property plan, where properties will be able to be defined, including % ownership. This would be used as default when explaining and auto-explaining transactions. Unfortunately, we do not have any immediate plans for a single bank feed to generate records in multiple Clear Books businesses.

Tommy

I'm actually not that worried about the bank import, I'm happy with manual entry. I really don't want to have to manually record everything twice though. Glad to hear the product team is looking at it, as quite a few of your competitors already have this feature.