Do I need to have software?

Aswell13

I am a registered partnership with my wife and have been trading on eBay for several years. I fill out a partnership tax form every year and want to know how the new tax reporting will effect me. I use a simple spreadsheet to record income and expenditure. My turnover is less than £20,000 per year with about a 15% profit.

Do I need to get reporting software?

Woodstok2000

Do You have any other self employment income, or income from property?

Aswell13

No, just this small ebay selling. I have gov. pension and a personal pension income and income from savings. I am interested if I need to buy business reporting software? Thanks.

Woodstok2000

The new tax reporting (making tax digital) only applies if you have over £50k income from self employment and property, so based on the above there should be no reason to chnage what you're doing now.

Aswell13

Great, many thanks

Jeremy535897

Partnerships are not in MTD whatever the turnover.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81928934#Comment_81928934

Do you know what will happen with joint owned property? At the moment I’m below the threshold for MTD, but it will hit in 2027. One rented out property held in joint names with my husband. Both declare half the income/ expenses/ profit on our individual tax returns currently. The rent income is paid into my husbands bank account as that is where the mortgage payments come from. All the software I’ve seen links to bank accounts to gather the data. So any software that may be available won’t find anything to gather data from on my bank accounts as there is nothing to show.

LITRG

Please do visit our making tax digital information hub - we have prepared guidance aimed at the unrepresented taxpayer which covers the whole process, including who MTD applies to. There are specific pages for both self-employed individuals and landlords.

https://www.litrg.org.uk/making-tax-digital-income-tax

We have also recently published a blog about choosing MTD software which may be of interest.

https://www.litrg.org.uk/blog-post/making-tax-digital-getting-grips-software

Hope this is helpful!

Jeremy535897

https://forums.moneysavingexpert.com/discussion/comment/81929197#Comment_81929197

You will declare half of the property income in MTD. Half the gross rents added to any other rental and self employed income will determine when you enter MTD.

The digital records are just that, software approved by HMRC. How you populate them is down to you. A bank feed isn't mandatory. Just enter the figures as they are paid (assuming you use the cash basis) in the software. You'd have to do this, even if you had a bank feed, for cash payments for example.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81929560#Comment_81929560

That’s helpful. I assumed it would collect data from the linked bank account and populate the hmrc requirements directly.

Jeremy535897

https://forums.moneysavingexpert.com/discussion/comment/81933227#Comment_81933227

The advantage of a bank feed is that it lists all the transactions from the bank in the software, and you then tell it where to post the entries (rent, rates, agents' fees etc). If you are brave (I would say foolhardy) enough to create what you hope are watertight bank "rules," and allow the software to auto-add the transactions, then it will automatically post those entries to the categories required. But you can quite easily create the entries manually. Bank feeds just make it easier. Even if you have a bank feed, you still have to review what has been posted where, before you press the button to submit the quarterly return.