If a client earns money from self-employment and UK property, don’t record both income sources in one AccountsPrep business.
HMRC treats self-employment and UK property as separate businesses. Each business needs its own digital records and quarterly updates.
Set up:
One AccountsPrep business for sole trader income
One AccountsPrep business for UK property income
AccountsPrep applies the correct chart of accounts and income tax categories to each business.
Work out how many businesses to set up
The client only has UK property income
Set up one UK Property business. HMRC treats all UK rental properties as one UK property business. The client doesn’t need a separate AccountsPrep business for each UK property.
The client has sole trader and UK property income
Set up two businesses:
A Sole Trader business for trading income and expenses
A UK Property business for rental income and expenses
The client runs more than one sole trader business
Set up a separate AccountsPrep business for each trade. Each trade counts as a separate self-employment income source.
Set up both income sources
Go to the business setup journey.
On the business type screen, select Sole Trader.
On Your Business, enter the sole trader business details.
On Confirm Business, select the confirmation option.
Turn on Income Tax/MTD if the client needs to use MTD for Income Tax.
Select the option to finish setup.
Go to the business setup journey again.
On the business type screen, select UK Property.
Enter and confirm the UK property business details.
Turn on Income Tax/MTD if the client needs to use MTD for Income Tax.
Select the option to finish setup.
AccountsPrep creates separate records for each income source.
Enter trading income and expenses in the Sole Trader business. Enter rental income and expenses in the UK Property business.
If both income sources are in one business
Don’t submit an MTD quarterly update from records that combine both income sources.
Set up a separate business for the second income source, then make sure each business only contains the transactions that belong to it.