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Making Tax Digital for Income Tax in Sage 50 Accounts

Created on  | Last modified on 

Summary

Sage 50 Accounts supports Making Tax Digital (MTD) for Income Tax for single income sources, including sole traders and UK property businesses.

Description

MTD for Income Tax means you'll now need to keep digital records and send quarterly updates to HMRC. HMRC requires one quarterly update per registered income source. Sage software supports one income source per company.

Sage 50 Accounts supports

  • Sole traders - Sage 50 Accounts v33.1 and above
  • UK property businesses, including shared ownership where you own the same percentage across all properties - Sage 50 Accounts v34 and above

NOTE:

If you own multiple properties with different ownership percentages, you can’t submit quarterly updates through Sage 50 Accounts.  We recommend speaking to your accountant or bookkeeper for support, or find one in our directory.

Multiple income sources

If you have more than one income source registered with HMRC, you must submit individual quarterly updates for each business. You'll need to submit using separate companies in Sage. 

Examples of multiple income sources include:

  • Multiple registered sole trader businesses
  • Multiple registered UK property businesses 

  • A mix of registered sole trader and UK property businesses 

Use one of the following options to submit:

  • Individual companies in 50 Accounts for each registered business 
  • Using a company in 50 Accounts for one registered business, and Sage Sole Trader for another
  • Support via an accountant

NOTE:

If Sage 50 Accounts can’t support your scenario or you can’t split income sources, speak to your accountant or find one in our directory.

Partnerships

If HMRC registers your income source as a partnership, you don’t need to submit through MTD for Income Tax.

If you and another person earn over the threshold for the same non-partnership income source, you both need to submit income tax updates. You'll need to submit using separate companies in Sage 50 Accounts.

Find out if and when you need to use Making Tax Digital for Income Tax at GOV.UK.

Business types not included

Some business types don't fall under MTD for Income Tax.

Examples include:

  • Limited companies
  • Partnerships
  • Trusts, estates, trustees of registered pension schemes and non-resident companies
  • With a Power of Attorney
  • You don't have a UK National Insurance number (NINO)
  • Claim Married Couple's Allowance (those born before 1935) or Blind Person's Allowance

Find out more about exemptions at GOV.UK.

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