HMRC relaxes MTD rules for joint property owners
New HMRC guidance confirms two MTD easements for joint property owners, but a third previously available to self-assessment users is missing. What do you need to know?
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New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
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New process for some exports starting in Northern Ireland
Starting next month, businesses that import goods via Northern Ireland will need to change their processes. What do you need to know?
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Forming a partnership to split your income
You’ve been doing some freelance work and what started out as a modest side hustle is now taking off. You’ll need to pay tax on the profits but is it possible to reduce it by splitting the income with your spouse?
HMRC has recently published a digital record-keeping notice in relation to Making Tax Digital for Income Tax Self-Assessment (MTD ITSA). The notice includes, amongst other things, confirmation of two easements for joint property owners. Joint property owners using MTD ITSA can save time by:
- Reporting gross rental income from jointly held properties in their quarterly updates, and report expenses later as part of the year end finalisation process; and
- Creating a single digital record for each category of income from jointly held properties and a single digital record for each category of expense from jointly held properties.
However, the Institute of Chartered Accountants in England and Wales (ICAEW) is concerned that there is no mention of how joint owners should report income if they only receive the net profit share figure. Under self-assessment, it is currently sufficient to report this as a single figure, but it appears this is not being replicated under MTD ITSA (subject to further announcements). It is also unclear whether that relaxation will continue to apply to self-assessment and the ICAEW has approached HMRC for confirmation.
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