Question asked by Maria Turner 1 day ago
I have set up the Property account - I’m not a sole trader and have no other business or income other than savings . I have registered with HMRC for MTD for 26/7 . How do i set up each property to make sure it only attributes my joint share for some properties and 100% for other properties ?
Hi Maria,
You do not need to create separate settings for each property to handle different ownership percentages. Instead, the way you record the transactions determines the share.
For properties you own 100%, you should record the full amount of income or expenses. For jointly owned properties, you only need to record your specific share.
If you are using the manual record buttons on your dashboard, follow these steps:
To record your share of joint income, click on the record income button. Enter the date and contact as usual, but in the amount field, only enter the portion of the rent that belongs to you. For example, if the total rent is £1,000 and your share is 50%, you would enter £500.
For sole ownership properties, follow the same process but enter the full 100% amount.
Recording expenses works in the same way. When using the record expenses button, only enter your share of the cost for joint properties, and the full cost for sole properties.
If you have connected a bank feed or are importing bank statements, the process for joint property is slightly different because the bank transaction will likely show the full amount received or paid. To record just your share from a statement:
Click on the transaction in your bank explain screen.
In the amount box, change the figure to reflect only your share of the income or expense.
Select the appropriate account code (such as rental income) and click add.
This will leave a remaining balance for that bank transaction. You should explain this remainder using the drawings account code. This tells the system that the rest of the money was for a non-business purpose (your partner's share).
HMRC requires that all your UK property income and expenses are submitted together under a single MTD submission, so keeping these records in your one Property business is the correct way to manage this.
For your savings interest, this does not need to be recorded in your Property business during the tax year. You will be able to add this and any other personal income sources at the end of the tax year when you finalise your MTD tax return.
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