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Map ledger accounts to UK Property categories

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Summary

How to map your ledger accounts to UK Property HMRC categories in Sage Accounting. This ensures that your Making Tax Digital (MTD) for Income Tax submissions include the correct income and expense totals.

Description

When you set up a UK property business for Making Tax Digital for Income Tax, Sage Accounting maps your ledger accounts to UK Property categories.

How Sage Accounting handles your chart of accounts depends on your setup:

  • If you’re a new landlord customer, Sage Accounting adds landlord ledgers and maps them automatically
  • If you’re an existing customer who switches to a UK property business, you need to review and assign categories yourself
  • If you use custom or renamed ledger accounts, Sage Accounting doesn’t map them automatically. Review and assign the correct UK Property category manually

Review your mappings before you submit your first quarterly update.

For finance costs, Sage Accounting maps to Residential property finance costs by default. If the cost relates to non-residential property, change the category manually.

Resolution

  1. Go to Settings, then select Chart of accounts.
  2. Find the ledger account you want to review.
  3. Select the ledger account name.
  4. Find the Income Tax category field.
  5. Select the correct UK Property category.
  6. Select Save.
  7. Repeat these steps for each ledger account you need to update.

    NOTE:

    You can only map HMRC categories to Income and Expense ledger accounts. This won't work for balance sheet items.

     

▼ Landlord income category mappings
Ledger code Ledger description Sage category HMRC category
4005 Rental income Sales Period amount income
4015 Additional services Sales Period amount income
4025 Reduction in rental income Sales Period amount income
Code not shown Tax deducted income Other Income Tax deducted income
4035 Income from non-refunded deposits Other Income Other income
4045 Other charges and fees Other Income Other income
4050 Rent a Room income Sales Rent a Room income
4400 Late Payment Charges Other Income Other income
4410 Interest Income Other Income Other income
4420 Exchange rate gains Other Income Other income
4900 Other Income Other Income Other income
4915 Carriage Sales Other income
4930 Insurance Claims Other Income Other income
4955 Premiums of lease grant Other Income Premiums of lease grant
4960 Reverse premiums Other Income Reverse premiums
▼ Landlord expense category mappings
Ledger code Ledger description Sage category HMRC category
7000 Employee Wages and Salaries Overheads Costs of services provided, including wages
7010 Statutory Parental Neonatal Care Pay Overheads Costs of services provided, including wages
7015 Statutory Parental Bereavement Pay Overheads Costs of services provided, including wages
7020 Employers NI Overheads Costs of services provided, including wages
7030 Employers Pension Overheads Costs of services provided, including wages
7050 Other Deductions Overheads Costs of services provided, including wages
7060 Statutory Sick Pay Overheads Costs of services provided, including wages
7070 Statutory Maternity Pay Overheads Costs of services provided, including wages
7080 Statutory Paternity Pay Overheads Costs of services provided, including wages
7090 Statutory Adoption Pay Overheads Costs of services provided, including wages
7095 Recruitment Expenses Overheads Costs of services provided, including wages
7100 Rent Overheads Other property expenses
7110 Water Rates Overheads Other property expenses
7120 General Rates Overheads Other property expenses
7130 Premises Insurance Overheads Other property expenses
7200 Electricity Overheads Other property expenses
7210 Gas and Oil Overheads Other property expenses
7220 Other Heating Costs and Utilities Overheads Other property expenses
7300 Vehicle Fuel Overheads Travel costs
7310 Vehicle Repairs and Servicing Overheads Travel costs
7320 Vehicle Licences Overheads Travel costs
7330 Vehicle Insurance Overheads Travel costs
7340 Miscellaneous Vehicle Expenses Overheads Travel costs
7350 Fuel Scale Charges Overheads Travel costs
7380 Leasing (Motor Vehicles) Overheads Travel costs
7400 Travelling Overheads Travel costs
7410 Car Hire Overheads Travel costs
7420 Hotel and Accommodation Overheads Travel costs
7430 Entertainment Overheads Other property expenses
7460 Subsistence Overheads Travel costs
7500 Printing Overheads Other property expenses
7510 Postage and Carriage Overheads Other property expenses
7520 Office Stationery Overheads Other property expenses
7525 Books and Others Overheads Other property expenses
7530 Telephone Overheads Other property expenses
7540 Internet Charges Overheads Other property expenses
7550 Computer and Software Overheads Other property expenses
7560 Mobile Charges Overheads Other property expenses
7600 Legal Fees Overheads Legal, management and other professional fees
7610 Accountancy Fees Overheads Legal, management and other professional fees
7620 Consultancy and Professional Fees Overheads Legal, management and other professional fees
7630 Business Insurance Overheads Legal, management and other professional fees
7640 Equipment Hire Overheads Other property expenses
7800 Repairs and Renewals Overheads Other property expenses
7810 Cleaning Overheads Other property expenses
7820 Laundry Overheads Other property expenses
7905 Residential Finance Charges Overheads Residential property finance costs
7906 Non-residential Finance Charges Overheads Non-residential property finance costs
7915 Residential Bank Interest Paid Overheads Residential property finance costs
7916 Non-residential Bank Interest Paid Overheads Non-residential property finance costs
7925 Residential Financial Costs Carried Forwards Overheads Residential financial costs carried forwards
7930 Rent a Room expenses Overheads Rent a Room expenses
8010 Property Depreciation Depreciation Not reportable
8020 Plant and Machinery Depreciation Depreciation Not reportable
8030 Office Equipment and IT Depreciation Depreciation Not reportable
8040 Fixtures and Fittings Depreciation Depreciation Not reportable
8050 Motor Vehicle Depreciation Depreciation Not reportable
8100 Bad Debts Overheads Other property expenses
8110 Bad Debt Provision Overheads Other property expenses
8200 General Expenses Overheads Other property expenses
8210 Subscriptions Overheads Other property expenses
8220 Clothing Costs Overheads Other property expenses
8230 Training Costs Overheads Other property expenses
8260 Exchange Rate Losses Overheads Other property expenses
8270 Currency Charges Overheads Other property expenses
9998 Opening Balances Overheads Not reportable