How do I record my savings interest, a state pension and private pensions, please?

Hi Wendy,

For your non-business income: savings interest, state pension, and private pensions, you do not need to record these in your day-to-day business accounts. Instead, Clear Books provides a central hub called the MTD Tax Return account to handle these personal income sources.

Here is how you can manage this without the risk of duplicating data:

1. Set Up Your MTD Tax Return Account This account acts as your "year-end hub." It sits alongside your business accounts and brings all your income together for your final tax calculation.

How to add it: Hover over your business name in the top-right corner and select Add MTD Tax Return.

Consolidation: Once added, it will automatically pull in the profit and loss figures from both your rental and marketing businesses.

2. Handling Pensions (PAYE Income) You mentioned that HMRC already collects tax on your pensions via PAYE. One of the benefits of the MTD Tax Return account is that it connects directly to HMRC's systems.

Pre-filled Data: HMRC already holds records of your private pension income, state pension, and any tax deducted at source.

No Manual Entry Needed: These figures will be pre-populated in your MTD Tax Return account. You will simply need to review them to ensure they match your P60s rather than entering them manually, which eliminates the risk of duplication.

3. Recording Savings Interest Savings interest is also handled within this same MTD Tax Return account:

Adding Interest: You can manually enter your total interest received for the tax year into the dedicated "Other Income" section.

Annual Requirement: Unlike your business income, you only need to confirm these figures at the end of the tax year. Tommy